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The answer everyone wants is:
“Yes, always.”
That is not the answer.
The correct answer is:
It depends on the contract and why and when the transaction is canceled.
DUE DILIGENCE CAN MATTER
The purchase agreement may provide the buyer with specific investigation and decision-making rights during defined periods.
If you discover a significant property problem and act within applicable contractual rights and deadlines, that may lead to a very different earnest-money outcome than simply deciding months later:
“I don't feel like buying anymore.”
See what due diligence means for the investigation rights that protect buyers.
FINANCING CAN MATTER
If the transaction contains financing protections and the buyer cannot obtain financing under the relevant contractual terms, those provisions may affect the deposit.
Again:
The contract controls.
APPRAISAL CAN MATTER
A low appraisal may trigger contractual rights or negotiations depending on the agreement.
Do not assume every low appraisal automatically allows unrestricted cancellation.
DEADLINES ARE EVERYTHING
This is why Lisa does not simply hand clients a contract and say:
“Sign here.”
She wants you to understand when important decision periods expire.
WHAT IF THE SELLER AND BUYER DISAGREE ABOUT THE DEPOSIT?
Now the escrow holder and parties must follow the contract and applicable procedures.
Legal advice may become necessary in a genuine dispute.
Lisa is your REALTOR®.
She is not the judge.
DO NOT GHOST THE TRANSACTION
If you want out:
Call Lisa.
Immediately.
Timing can affect rights.
