Here goes.

I recently attempted to buy a home.  Both parties signed an agreement of sale of a house on 7 acres.  All inspections and terms of the contract were fulfilled, just waiting on settlement.  A week before settlement, I am contacted by my buyers broker and told that the sale can't go through because there's a grandfathered deed restriction that states this parcel of property cannot be sold without the 4.4 acre lot across the street for an additional (outrageous) price.  I stated, in a more tactful fashion, “Fuck no!”  I know legally we could have held out and forced the seller to subdivide the parcel, but I really don't feel like playing the “how long before I win in court game.”  I signed a notice of termination.

Included in the terms of the contact is a section for default by the seller- the seller is required to pay for the title fee search, mortgage company appraisal,  and a couple of other small fees stated in the agreement of sale.  That's easy enough for even the slow to understand.  After the seller being a total jitbag and dragging his feet, he finally agreed to reimburse those fees, which will subsequently release my earnest money deposit.

Here's my question.  I paid for a separate home inspection of the property.  This inspection is NOT part of the agreement of sale.  My knowledge of contract law brings me to the conclusion that I am out that money (>$500) in the terms of the sales agreement (it WAS my option to have this inspection performed).  Do I have any recourse to recover that fee?  The seller had to know before he put the property on the market that there was a deed restriction, so I've been seeing this transaction as a bait-and-switch.  I wouldn't care, but this asshole cost me a lot of travel to/from the property, used vacation days from work, and caused a lot of angst to my wife and me.  And my present home is ready to move and tough to live in (box city!).  Any legal recourse (and a guestimate of the odds of winning)?

You don't state if you are represented by a real estate broker. Your broker can tell you the answer.

Sounds like you are out the price of the inspection.

The more detailed you make a contract the less likely a judge is to allow variation.
Coulda, would, shoulda, land

I stated that I have a buyers broker.  I also know that by the sales agreement contract I cannot recover this inspection fee.  I'm just wondering if I have a legitimate chance of recovering my loss in small claims court if I should decide to pursue further action against an unscrupulous seller  and agent.

Even after you get an award in small claims you then have to collect it.
The court does not do it for you.

How did the seller default?  The linked sale of the neighboring property was discovered during the title search, which is exactly what the title search is supposed to do.

I'm not so sure about the legality of a deed restriction requiring an adjoining parcel to be included in the sale, However. Might be an illegal tying. I'd want to see that specific language in the deed.

Sounds more like the seller wanted to sell as a package. My last house had 3/4 acre lot and I also owned the3/4 acre lot behind it. When the house was sold it was advertised as an all or nothing deal.

By refusing to sell.  

Whatever, the deal is over, the seller paid the fees, and we found another property, one my wife likes more than the first one.  Win-win; game, set match!  Thank you all for your input.

Glad it worked out for you.  My folks sold their house a few years ago, guy walked at closing.  Dad let him have his earnest back (why, I'll never know).  3 weeks later they got another offer for an extra $20k, closed smooth.