If you call their bluff, but remain calm and diplomatic, in my experience, they give it up.

However, if the landlord finds it necessary to take the matter to court, you will be happy to abide by the judge's decision.Unless you knew about this fee, it's probably a bluff to try to get you to pay it.  

(Don't worry, the trees were big oleander bushes and not the fabulous heritage oaks, but still....)Would like any lawyerly advice on this topic.

For one, it calls their bluff.  

Basically, nicely calling her bluff, in case it is a bluff.Then, really do go have a lawyer look it over.  

Probably oak treads under the carpet.

I have found that it never hurts to start out by calling their bluff. 

And tell her it's a real shame she decided you aren't on friendly terms anymore.She's being a bully now, and the best way to deal with a bully is to call their bluff. 

My neighbors property sits behind and above me on a bluff, while my house is below.

Threaten to sue the agent and the seller if they don't return your earnest and void the contract because they breached it.I think you could actually win on this basis, but usually just the threat of a plausible winning lawsuit is all it takes, in my experience.I have great luck getting folk to settle with a tough bluff backed by a potentially winning case.