Does it make sense that contingencies remain in effect until a buyer removes them or a seller issues a notice to perform? Even if the seller issues the notice to perform and the buyer refuses to remove them, the seller may then cancel the agreement but what seller right now, really wants to do that? They would only do that if they had someone else lined up to pay more and multiple offers in this market are very rare. The buyers deposit is not subject to a seller laying claim to it unless the buyers breach the contract, that is they remove all their contingencies and then do not perform. This is it in a nutshell, but always consult with legal counsel for advice on the implications of these various contractual matters.
This is Dave, from The McLaughlin Group, keeping it real in real estate!