It all depends. Usually yes unless they get denied for financing.

Luis Fernandez, ABR, CIPS, GRI, QSC, SRES, Top 1% of Westchester Brokers
The Luis Fernandez Sales Team
Keller Williams Realty Group
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Scarsdale, NY 10583
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You should seek this advice from your attorney. Specific performance can be touchy depending on the terms of your contract. I'm sure it will all work out,....best of luck

From a New York Attorney perspective, it depends on the terms of the Contract. A typical contract in the NY metro area may contain a few contingencies but the usual "out" for a buyer would be the mortgage contingency or appraisal issue.
If the purchaser can be held in default according to the terms of the contract, you should be entitled to the entire down payment. Our contracts typically set the amount of the down payment as the liquidated damages.

I suggest that you consult with your attorney to determine if you are entitled to the deposit based on the terms of the contract.

Hi Rob. I deleted and corrected my earlier answer. The new word creation was a result of an accidental cut and paste job. Thanks for bringing it to my attention.

Hi Rob. You'll have to look at the contract. If the buyer can cancel for good cause, most likely you can't keep any of the deposit money. If the buyer defaults after having removed all contingencies, you may be able to keep all or some of the deposit money depending on whether your contract contained a liquidated damages clause. In CA, the maximum allowable amount of liquidated damages is 3% of the purchase price. Thus, even if the buyer put 10% down as earnest money, you would not be able to keep the entire deposit money even if the buyer defaulted. Ultimately, your question can only be answered by an attorney who can review the contract terms.

THANKS FOR THE QUICK RESPONSES.

Ms. Ferdig what is "limitedcels" (found in your sentence..." if the buyer can limitedcels for good cause....."

I would really suggest that you speak to your attorney. Most contracts call for you to keep at least part of the down payment If there was willful default on the buyer's side. Most contracts have a mortgage contingency clause, which means that if they we unable to obtain financing that the contract is null and void.

It has also been my experience that usually both parties in the dispute end up making a settlement if the buyer was found in default.

Are you referring to an actual 10% deposit, or is the buyer planning to put 10% down. Have the funds already been deposited?

Rob:

Is this a land contract, Letter of intent or Purchase Agreement for an improved property on a State Real Estate form?