To withdraw a deposit when buying a house, follow these steps: Confirm the deposit was made via a check or wire transfer to the escrow account per the purchase agreement. Review the contract for clauses outlining refund conditions, such as inspection contingencies, financing approvals, or closing deadlines. If the seller cancels the deal without valid reason, the buyer can request escrow to return the funds. If the buyer backs out, the seller may retain the deposit unless the agreement specifies otherwise. Always consult a real estate attorney to navigate disputes and ensure compliance with local laws.

The deposit withdrawal process is critical to protect both buyers and sellers. Escrow services, which handle deposit holding and distribution, reduce fraud risks by ensuring funds are released only when contractual terms are met. According to the National Association of Realtors (NAR), 15% of homebuyers experienced deposit disputes in 2022, often due to unclear contingency timelines or miscommunication. Escrow agents typically hold 20-30% of the purchase price as a deposit, a buffer to incentivize timely performance. For example, a 2021 study by the American Bar Association found that 68% of deposit disputes involved issues like failed home inspections or financing rejections, which escrow clauses can mitigate. Compliance with state-specific regulations, such as California’s 3-day cancellation window or New York’s requirement for written deposit receipts, is essential to avoid legal penalties. Proactive legal review and escrow adherence minimize risks, ensuring smooth transactions.