Yes your earnest money deposit is refundable if you are removing or backing out of the contract within the time frame you set up. However, this can vary greatly based on numerous factors.Contact us at (408) 226-2437 in San Jose, CA, and complete your due diligence with CID disclosure. Put down some earnest money to prove you're committed and ready to make this your dream home. The fee is meant to incentivize the seller to complete the due diligence process and provide evidence that the buyer is serious about buying the property. This quick guide for sellers of Bay Area homes will help you make sure you are making a full and detailed disclosure of all material facts to a buyer. The earnest money deposit is a contractual deposit spelled out in the PSA.