What happens if a buyer does not fulfill the earnest money deposit requirement?

When a buyer fails to fulfill the earnest money deposit requirement, this typically indicates that they are not fully committed to the purchase agreement. The earnest money serves as a good faith deposit, signaling the buyer's intention to follow through with the transaction. If the buyer does not provide this deposit by the agreed-upon date, the seller has the right to terminate the contract, which means the transaction falls through. This outcome is grounded in real estate practice, where earnest money is a critical element of the contract that ensures the buyer's seriousness about the offer.

In essence, the absence of this deposit can be seen as a breach of the terms of the contract, directly impacting the seller’s ability to move forward with the sale. Thus, if the buyer does not meet this requirement, the result often is that the seller will choose to cancel the agreement and pursue other potential buyers.