Real deposit It doesn't mean the seller will want to release the deposit. If the deposit is held by a third party, such as a title company or escrow company, all parties generally need to agree on its disposition or at least agree to cancel. If both parties are unreasonable, the transaction could be placed on hold, depending on state laws. In california, a seller cannot unreasonably withhold a refundable earnest money deposit, or the seller could face a penalty fine. let's say the buyer hires a professional to conduct a home inspection. During the home inspection period, the buyer discovers the furnace is inoperable and the home inspector says the furnace is beyond its useful life. The buyer might ask the seller to replace the furnace. The seller could refuse and tell the buyer to cancel the deal. Under this situation, the buyer might be entitled to receive the earnest money back upon cancellation. Can a seller keep a buyer's house deposit? Keeping a buyer's deposit
