It is a lesson. Don't sign a non-contingency agreement. I am wondering what your agreement says about the deposit. If one party backs off from the contractual obligations prior to the closing, a breach in fact, how to dispose of the deposit the purchaser has paid? Your deposit must be in escrow right now. In your case, the seller has no actual loss because she/he is selling the property at a higher price. But if you agreed that the seller may take the deposit for liquidated damages, no one would really be able to help you in this matter. Just look through your real estate sales contract carefully and start to think about hiring an attorney.