Make sure to read your contract — laws vary from state to state. You can lose your deposit if you waive your contingencies, don't follow the terms/meet the timeline of the purchase contract, or you get cold feet without a valid cause. Earnest money gives sellers financial assurance that a buyer won't back out of the contract without this valid cause. Depending on how the contract is worded can get into a lot of what-if scenarios, for example some contracts would say you can lose your Earnest Money if you don't obtain financing or your loan is denied and you don't fulfill your side of the contract.
Updated on: 05 / 07 / 2022