In the home purchasing context, if both the buyer and seller decide to end the transaction, the funds in the escrow account typically revert to the buyer.  What happens to the escrow money will also depend on the terms and conditions of the purchase and escrow agreements. If either contract contained deadlines for the performance of certain steps in the purchase process (such as home inspection) and the buyer is not timely about reporting problems with the property, the seller may be entitled to keep the escrow money even if the buyer backs out of the deal. It is, therefore, advised that a home buyer consult a real estate and/or closing attorney during the home purchasing process. An attorney can make sure that the buyer’s interests are adequately represented in the contract and can give the buyer proper advice before any money is placed into escrow.