Depends on why it fell apart!
Our AZ RPC gives Escrow Company discretion over how to disburse earnest deposits in event of breach.
Contract is King. Remedies for breach are clearly outlined, non-breaching party usually entitled to earnest deposit.
There has only been one time in 18 years that a title company IMO blew it and gave earnest money back to a buyer who breached a contract.
Nowadays, everybody so careful, the title company is reluctant to act unilaterally even though they can. And they make everybody sign a mutual cancellation.

  Good morning, Peter.

        Title Attorney / Title Company holding the deposit wants a release signed by both parties before they return it. 

     Typical form is FAR RC-3X, Release and Cancellation of Contract.

It depends on the circumstances.

I let the title company holding the deposit refund the money when they have an autorized release signed by the buyer and seller.

There has never been a time in my business when the emd was not released. The correct release form is signed by the parties. It is provided to escrow and the escrow officer releases the funds per the mutually signed release. 

Not without everyone's signatures. I would say that's a generous percentage of 99.999%.

Our contracts in Oklahoma are 97% buyer oriented so keeping the emd is unusual.

It would be released by escrow with signatures by both parties. It would depend on why, the timing, and the terms of the contract. I have no idea what's typical assume it's more common for it to go back to the buyer.

I am never the escrow agent so I don't have the emd to return to the buyer.  Our contract covers duties and responsibilites of the emd and release of it.  

Unless they give a legal reason otherwise

It's not up to me

If it falls apart due to a contingency that was not met, then absolutely. If it is due to the buyer not moving forward after all contingies are met, then NO. The contracts we use specify that my broker retains 50% of the EMD and the seller receives that balance of the money.

Title does this. If it's still during the option period, any of the agent can request the release of the emd as long as title received the termination document.  After the option period, then both parties will have to sign.

Follow what the contract says. Each situation is unique

Yes. We follow the terms of the contract.

NOTHING is released without a fully executed release agreement....if one party refuses, it's not our money and we do not make decisions about it.... if the attorneys cannot negotiate it, we will eventually get sued for it and turn it over to the clerk of courts....NOT OUR MONEY....NOT OUR DECISION AS TO DIRECTION OF THE FUNDS....

By "you," I am sure you mean the seller.  What does the contract say?  That's the answer.  In our market, there are so many outs for the buyer that it is rare a seller can cash out the EMD if a deal falls apart.

Peter Mohylsky - if it is as per the contract.

The title company releases it to the appropriate party, buyer or seller, depending on the contract and its termination cause.  But, all parties have to sign a Release agreeing to the funds disposal.

Most of the time.

It is up to what the contract calls for and what the parties involved (which I am not one of) agree on. 

Yes, if the Buyer isn't in default 

Sellers call.

I don't make that decision.  If the buyer exits the contract within legitimate contract reasons... (ie: attorney review, inspection, or mortgage contingencies)... we don't have a leg to stand upon to keep any e.m.

If they've broken the contract, and decided to back out "just because", their e.m. is at risk... it's the decision of the seller as to whether we're going to release the funds.  We are only allowed to release money at the express written direction of the buyer/seller as they direct.  Period.

Escrow holds the EMD and will release it upon mutual agreement by both parties.  Depending on what has transpired during the escrow, fees may be deducted or the seller may be entitled to it.

BOth parties sign for release.  If the buyer and seller have each done their part of the contract, but it falls apart due to a contingency not clearing, typically the money is refunded.

Ive had a few deals where how much is refunded is negotiated due to buyers lack of progress, delays, etc. 

It's up to the seller, not the agent.

Yes, provided the proper paperwork is signed by all concerned Peter Mohylsky 

We agree with Jeff Dowler, CRS 

Never, it is not mine to release.

Depends upon the Contract - when they terminate, based on the dates of the Contract, is how NC operates. 95% of the time, the sellers opt to release the EMD.

It is up to the buyer

Hmmm,

The lender blows the deal.

So what are my choices?

1. Take the money and run
2. Let who ever is holding the money, take it and run
3. Divy the dollars so everyone except the buyer is happy.
4. Advise all parties to sign the release and return ALL the money. In Florida buyers are extremely well protected.

Any situation that does not return ALL the money when the lender drops the ball should be identified as a possible reason why so many are not fond real estate people.

Typically the EMD is held by the Settlement Co in most cases in Northern Virginia or sometimes by the Broker and what happens to it depends on the what and why the contract fell apart. Peter Mohylsky 

Most often but not always.

Our state contracts are written for the buyer, and generally tough for them to lose their EM.   In over 20 years, only 4 Sellers have kept the EMD.

This decision is up to the parties to the contract.

I don't recall if I had any EDM was not release. And the past 11 years only 2 contracts fall apart.

Release or not of EMD has nothing to do with the market. It is a byproduct of the contract. Cancellation under the terms and conditions specified in the agreement will likely lead to release of the EMD back to the buyer. DEFAULT on the part of the buyer may lead to forfeiture of the EMD to the seller. One size does not fit all. Conflicts can lead to legal action by one side or the other.

Depends on what's in the contract

Depends on the contract.