When does the seller keep the deposit?

Earnest money typically stays with the seller when a buyer backs out of a contract for a reason not protected by one of the contract's contingencies, such as simply changing their mind after the inspection and financing windows have closed. If a buyer exits properly within a contingency period, like a financing or inspection deadline, the deposit is usually returned instead. Joel Boss reviews the specific contract language with a seller so it is clear which outcome applies before a dispute happens.