The seller is generally entitled to keep all the escrowed monies as damages for the buyer's breach of the agreement to buy the property, except--1) If the buyer properly terminated the transaction according to some contingency or provision in the contract of sale which allowed him/her to do so without penalty; for example, the sale was properly terminated pursuant to a finance contingency.2) If the reason the  sale was terminated was fraud (a material, knowing lie or misrepresentation) or material breach of  contract by the seller.Apart from the above, the seller typically keeps the escrow.