There may be penalties for either party for failing to complete the transaction, unless a valid reason to terminate the sale is outlined in the agreement.
After signing, the buyer should deposit an amount of earnest money and a partial payment of the purchase price under the agreement. Typically the seller will be entitled to the earnest money paid by the buyer if the buyer backs out of the sale without proper cause. However, if the transaction is terminated with reasonable cause, the earnest money and accumulated interest, if any, may be returned to the buyer.