re: Backing out of Purchase Agreement

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Somebody gets it.

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We all get it. You're an a-hole looking to make a quick buck on a technicality. Don't act like our brains can't process what's happening here.

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Contract was broken due to 10 year old, perfectly functioning AC. I offered to replace the entire thing. No dice.

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Completely irrelevant. You were notified within the proper time frame. It wouldn't surprise me if your realtor was notified by the other in writing and you just didn't get it, or if your realtor told theirs that the writing wouldn't be necessary.

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You tell me who's not acting in good faith?

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There is nothing good about what you've decided to do. You're either going to force someone into buying a house they don't want, or you're going to try to get as much as $30kfrkm them for your "inconvenience."