Sellers want us to back out of contract after their new house failed inspection
We went under contract with a contingency clause that the sellers would have 2 additional weeks to go under contract with a new house for them, and the closing date for both of us would be 30 days from the signing of that contract.
The sellers went under contract within that time frame and our contingency was removed via us and the seller signing an addendum stating that.
We just got word that the sellers are now backing out of their contract, as their new house failed inspection, and asked if we are going to back out of our contract, and if not, could we push the closing date back to whatever their new closing date will be.
We have no intention of backing out, as we love this house, but are hesitant to push the closing date further out, as we will have to extend the lease on our apartment to month to month, and our contract has language that states the seller will have to pay us a daily fee if they occupy the house after our closing date, which will cancel out our extra rent payment.
Our realtor is telling us that this is difficult to enforce, and our only options are to either back out or push back the closing date. We feel like we should stand our ground, pay for an extra month of rent, and be lenient on the move-out day knowing that the daily fees will cover that cost. We don't want to be jerks, but we also don't want to lose additional money when we had language in our contract to cover this exact situation. Are we correct in our reasoning/interpretation?