Am I entitled to good faith deposit back

What is the name of your state?CA

Purchased a home in mid May and fell out of escrow 1 week before closing due to not being able to get financing. Had put 5,000 as good faith and seller is now wanting to keep it. My agent informed me that she had a verbal agreement with the sellers agent to return deposit and cancel escrow, since seller has recieved new buyer and is in escrow again. Now the home has fallen out of escrow again and the seller has changed mind on signing. Is it legal to enter another escrow without cancelling mine and am I not entitled to my money back. Please Help!

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Originally Posted by Diego04

What is the name of your state?CA

Purchased a home in mid May and fell out of escrow 1 week before closing due to not being able to get financing. Had put 5,000 as good faith and seller is now wanting to keep it. My agent informed me that she had a verbal agreement with the sellers agent to return deposit and cancel escrow, since seller has recieved new buyer and is in escrow again. Now the home has fallen out of escrow again and the seller has changed mind on signing. Is it legal to enter another escrow without cancelling mine and am I not entitled to my money back. Please Help!

***A seller can enter into another sales contract with another buyer while your earnest money deposit is in dispute. The problem arises when the other transaction is ready to close. If the other transaction is placed at the same escrow company that has your deposit in dispute, then the other transaction cannot close until something is done with your money. You need to have cancellation instructions drawn up by the escrow company and all parties must sign it for you to get your money back. The Realtors also have a form that needs to be signed by all parties to the transaction.***