Since this is a hypothetical question and we do not how far in the process in this assumption the contract has gone, a valid answer is not available here. The buyer has more exit clauses in a typical contract, example financing and inspection period.
Depending on circumstances, Seller can:
1. Keep the Earnest Deposit
2. Ask Attorney to review for damages, if any, since home was taken off the market
Reviewing with an attorney is the smart thing to do since each purchase contract is unique.
Jeffrey Masich, Realtor, GRI, MBA
Arizona homes and land for purchase or sale