Real Estate Law
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Your neighbor needs to be sued for tortious interference. When you maliciously interfere with a contractual agreement in this manner you become liable for the resulting damages. You should contact a local attorney immediately and file the lawsuit. You should not tolerate this for one more second.
The next issue is as to the buyer. Who can really blame the buyer here for getting cold feet when it suddenly appeared they were buying in to a property drainage dispute. Obviously the contract may still be enforceable but I think I would start by putting pressure on the neighbor. Once sufficient focus is applied to the malicious wrongdoing of the neighbor, your attorney may advise you that the contract should now be enforced. Real estate contracts have numerous contingencies but I know of none that involve being called by a neighbor. You may simply need to sue for breach if it becomes necessary.
Please reply if I can help further.
The buyer's liability may exceed the earnest money if the contract did not spell out the liquidated damages provision OR if the buyer refuses to release the earnest money in case of their breach... thus nullifying the liquidated damages provision. This is something your attorney will want to review carefully. I wouldn't limit anything at this point including further monetary damages or even specific performance (forcing to perform under the contractual terms). Again, your attorney will want to review the contract carefully and evaluate any provisions that may be challenged.
As for the real estate agency that employs your neighbor, I doubt you would be able to show that she was acting within the course and scope of her employment to hook the company for liability. It is something you would want to evaluate, but I doubt it materializes. It is much more likely that she abused her position and access to gain information that she had no business gaining... this could also result in some sort of licensure issue for her.
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