It is true that both parties have to sign for you to keep the deposit, otherwise it goes into mediation, and sometimes to court from there. If they do not have a valid reason for backing out, I would ask to keep the security deposit. Sometimes they put up a stink, other times they forfeit it.
There is an option period if buyer within that time period based on agreement can cancel with full amount of earnest money returned.
However without reviewing executed contract difficult to state.
If you don't have an agent confer with attorney OR title company
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Read your contract and consult with your realtor or if you don't have one see an attorney.
The standard form PA contract includes several provisions for either the buyer or seller too terminate for cause. Under normal circumstances termination for cause includes a pre agreed condition to refund the deposit money to the buyer. However Termination of the contract and Release of the deposit are 2 different events. Termination is a unilateral event thhat can be initiated by either party. Release is a bilateral agreement to distribute the money. Distribution can be to either party or shared as long as both parties agree. If they can not agree then the deposit money should remain with the broker until an agreement is reached or ordered by the court or the result of arbitration.
Fran and Mark Redding
Prudential Fox Roach
1010 Stony Hill Road
The only person to advise you should read all documents related to your transaction. Best advisor would be your Realtor or their broker, after that an attorney.
In most cases as long as the buyer has not removed all contingencies they can walk away for any reason.
In most cases your agent will continue marketing your property, so technically you are not "out" anything because the property was for sale during the contingency period.