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i made an offer using a land contract payment sched negotiation insued now we quit we getmny bk

we are in process of buying using av land contract we have an accepted offer' 1 week out we renegotiate the payment terms seller agrees we find out that the dnr has information concerning the closing/repair of the damn this was disclosed.but... cost of 2 thousand dollars each owner.discussed as a solution by the.association is in discussion the ownners want to keep the damn the cost  was not disclosed to us  we sent a letter of defect and we ask for a reduction in price by 2 thousand. the seller refuses this.and rejects our new offer (we are in process of re negotiation) are we still bound by the fist signed acceptance ???  we did give the seller 10 days to respond they did ...we can no longer make any offers we accept thier refusal...   are we entitled to our partial payment in earnest money? of one thousand dollars?
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July 26 2013 - Wisconsin Dells
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