Is earnest money refundable when a Rochester home purchase falls through?

There is no automatic answer for every sale

Whether a buyer can recover earnest money depends on the agreement, the reason the transaction ends and whether required procedures were followed. A deposit shows commitment to a signed purchase agreement. It is not the same thing as buying an unrestricted right to walk away. Have your attorney review your actual contract before making a cancellation decision.

Know how the deposit fits your cash plan

If the purchase closes, earnest money may be applied toward the down payment or closing costs. Keep your receipt and ask the closing team to show the credit in the final figures. Confirm who holds the deposit and what the signed instructions say about releasing it. Do not assume that paying a deposit creates protections that are missing from the agreement.

Read the contingency and the deadline together

An inspection or financing contingency may offer a route to termination only under specified conditions. Ask your attorney what evidence and notice are required, who must receive them and by when. Finding a problem and properly exercising a contract right are different steps. A conversation with an agent or seller may not satisfy the written notice requirements. Avoid relying on another buyer's experience from a different state or a different contract.

Make a small document checklist

Before signing, collect the agreement, deposit instructions, contingency dates and the contact details of your legal advisor. Ask for a plain-language explanation of the situations that could put the deposit at risk. If a dispute develops, preserve communications and get advice before signing a release. Ellison Realty can help organize transaction questions, while your attorney evaluates refund rights and the steps appropriate to your purchase.

Further reading

• CFPB: Mortgage terms, including earnest money