When can a buyer back out and keep the deposit?

A buyer can typically back out and keep earnest money when a valid contingency in the contract, such as inspection, financing or appraisal, allows it within the timeframe the contract sets. Walking away outside those specific protections usually puts the deposit at risk of going to the seller instead. The exact terms depend entirely on how a specific contract is written, which is why reviewing it with an attorney before signing matters. Joel Boss makes sure buyers understand their contingency deadlines before they ever come into play.