I just experienced a similar situation. I was the listing agent with a pended contract but my seller had some unfortunate circumstances come up that necessitated cancelling the purchase and sale agreement and withdrawing the listing so they could retain their home. Your listing agent needs to asap speak with their Broker to get lined up with companies proper procedures to handle this situation as each situation is different. Once your listing agent knows what their company expects of you, then the buyers agent needs to be informed. As the seller and the one breaking the contracts, you can expect to be held responsible for paying any costs incurred on the part of the buyer for appraisals, inspections, repair work completed as part of any repair agreements prior to closing, courier fees and of course their binder deposit returned and any other expenses the buyer incurred to date for processing of transaction. You can also expect to be liable for expenses incurred from the listing brokerage such as marketing, advertising, administrative costs, title work, surveys ordered and depending on the situation and policy of the listing brokerage...the commission. Also, depending on the state you are in and the circumstances at hand, you could also be liable for in civil suit if you fail to reimburse timely. There may be other unknown costs, you would be wise to have a heart to heart with your listing agent and or their broker and possibly even an attorney to ensure your rights are protected also.