When can a buyer back out and keep the deposit?

A buyer can back out and keep their deposit when a contract contingency, financing, inspection, or appraisal among the most common, isn't satisfied within its deadline, since those contingencies exist specifically to protect the earnest money in those situations. Walking away without a valid contingency in play usually forfeits that deposit to the seller. Brian Beatty tracks contingency deadlines closely so a buyer knows exactly where they stand.