There are three reasons we can cancel a contract and keep our earnest money. They are due diligence, appraisal, and financing.The Earnest Money is held at our Summit Sotheby's brokerage trust account or it can also be held at a title company. The correct way to cancel a contract for the buyer is to notify your agent with a phone call and in writing before the due diligence deadline has passed. There is no set amount for an earnest money deposit, so it's negotiable. The simple things are due diligence, making sure the buyer has time to do their due diligence and inspect the house.