Duplex Misrepresented, Seller keeping Ernest Money Deposit Check

[Carly M.]

Question: My husband and I got a "duplex" in Twin Falls, Idaho under contract. We later found out after signing away the earnest money that the house was misrepresented. The egress windows did not meet city code. The sellers said it did, we went back, measured, and found out they were not to code. There would only one exit in case of a fire. The insurance company said we would be liable in the case of a fire. We called the city to verify it wasn't up to code and found out they never pulled permits to build the basement, and the city views it as a single-family dwelling.  We also found out that there is only one heat control, so the bottom apartment has no heat controls. 

We killed the deal and they are saying they are keeping the deposit. Our realtor is hardly representing us and will not go to the seller to ask for it back. Saying we forfitted it. 

It is now listed on the MLS as a single family. With realtor.com you can see the previous listing listed as multifamily.

Here is the listing: 

Do we have a case to ask for it back? 

Thanks, guys!