We put a deposit down on a house in ca and signed contracts. Escrow never opened and we had to cancel. Can the builder keep our deposit?

Question

We put a deposit down on a house in ca and signed contracts. Escrow never opened and we had to cancel. Can the builder keep our deposit?

Answer

That depends on why the escrow never opened and the purchase was cancelled. It also depends on what the contract may have said about liquidated damages, i.e., whether it said the deposit would be liquidated damages or if the non-breaching party has to sue for actual damages.