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I am sorry for this dilemma.
If you canceled the contract during the inspection period? You are entitled to a refund of the deposit. The law is clear that the buyer can cancel the contract, at any time during the inspection period, and receive a full refund of the deposit.
If they refuse to return the money?
Sue them in small claims court.
Small claims is a true "peoples court". The formal rules of evidence and procedure do not apply. So you can represent yourself (no need to hire a lawyer).
The process is simple enough. You head to the county court (the county where the seller lives) and talk to the clerk of the court. They can get you the forms needed to start. You file the claim, serve a copy on the defendant and wait for your day in court.
In court, be prepared to tell the judge what happened, and bring in copies of any evidence that supports your case. IF there are witnesses who can testify about what happened? Have them come as well.
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