Legal VS Moral And Your Deposit $

Hi People.
The difference between legal and moral is a very gray line. The law is only man's feeble attempt at justice. That's why there are so many people who get mad at a court's decision to punish too lightly or too severely in any type of legal scenario, from a terrorist to a jaywalker.
Same goes in real estate where the law usually comes down to what's in the contract.
So, first of all, know what's in the contract! Don't let it come down to "but I thought that meant....", it does not matter. What you thought is irrelevant, it's what you signed.
But, there are plenty of situations in real estate where you might have to sign something, even if you don't like it that much, in order to buy or sell a home.
A good example of that is the contingency periods on a contract. If you're a buyer in competition for a house you might accept a shorter or stricter contingency period, leaving your deposit a bit vulnerable. If you're the seller & only one person wants your house and they want certain contingency periods elongated, then you might have to or possibly lose that buyer.
But, either one of the scenarios does not eliminate your right to fight for the deposit if something goes against you when the contingency period is not on your side. I only suggest doing this when you feel that you have been wronged and that you are morally correct. Otherwise you're kind of creepy.
If you are a buyer in escrow and your contingency periods are up and something happens where you can not go through with the purchase, the seller will want to keep your deposit. If you think you're being screwed, fight him. He can't (or at least he's not supposed to) open a new escrow without cancelling (everyone has to sign this cancellation to make it valid) the current escrow. Meaning, he can't resell his house without all parties agreeing on the cancellation.
If you are a seller and the buyer still has his contingency periods you have hardly any leverage. You want to resell your house and the buyer (contractually) is in the right. If you get a new buyer then just sign the cancellation that gives the buyer their deposit. But, if you feel you have been wronged do not sign the cancellation until you get a new buyer. While you're waiting for a new buyer try to negotiate with the old buyer that you keep some of the deposit money.
In either case, the only thing the other party can do is threaten to take you to mediation, arbitration or small claims court. Don't go. Negotiate up to that point and if they don't budge, sign the cancellation because you will lose. When you do lose you will be stuck with the court costs. It does not matter if you are morally right, the courts do not care.
Whatever your situation, go with what your heart says. Trying to jerk someone will come back on you.
God Bless.