Seller Of House Won't Return Full Deposit To Us. What Do I Do?

Hello,

Location: New York(not the city).

I recently backed out of a purchasing contract on a home based on lack of attorney approval due to the sellers not providing any information on a private road easement.

The time between signing the purchasing agreement and requesting the cancellation was 11 days.

The sellers agent and lawyer have not responded to my agent and her broker, or my real estate lawyer, but they have provided a signed cancellation that says we will get $4500 out of our $5000 deposit. They want $500 for "their troubles".

The sellers proceeded to relist their house and it is now pending again.

A demand letter has been sent stating that what they are doing is illegal that they are now in 2 contracts and that we went through the cancellation process quickly, and the backing out via attorney approval gives us the right to our full $5000. They did not respond.

I've been advised that our options are to sue them, let them take the $500, or to buy the house and maybe something will come of that because they're under 2 contracts.

I've been advised that I should contact the board of realtors (or maybe its association of real estate brokers or something like that idk) and maybe they can do something about this so i will be talking to them tomorrow.

I am really just trying to get some opinions. Is a lawsuit really worth it? I have no doubt that we will win the case. My issue is I do not want to end up with less than what I would if I just gave them $500 for no reason at all. Is it likely that we will end up with less than our deposit after it's all said and done? Obviously there's no way to know but maybe someone has some insight or some experience that has a good idea. I have no experience with lawsuits, so I have no idea. I have refrained from contacting the broker thus far, but man do i really want to.

Any advice is welcome.