It was cancelled on 6/8/12. Because we did not have a contract at that point, they immediately opened another escrow. I contacted Pacific Escrow inc and she told me there is nothing she can do, the owners have the right to keep our deposit. It is $5000! I mailed the sellers agent & the escrow officer a request to the owners asking them to release our deposit. Our agent said there is nothing he can do and to sign the cancellation form. In addition we will also be responsible for any expenses that the seller will incurred if this goes to arbitration or small claims court.??