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Good afternoon. No, the buyer can not just cancel at any time. In a FL real estate contract, there is typically a time in which the buyer can back out for any reason. Once that time passes, the only way they could back out and not have to proceed, is if there was a condition that would allow it. In this case, it appears that financing was a condition to the sale. However, the buyer needs to make a good faith effort to obtain it. If they tried and were denied the loan, then they could back out and get their escrow returned. At the same time, you shared that they were supposed to apply for financing within 5 days and I am inclined to believe at some time also provide the seller with a commitment lender from the lender. If they never did this, sat idle and now just want to walk away, they would be in breach and the seller could have a good faith basis to keep their deposit, if they wanted to walk away.
I just wanted to follow up and see if you had any other questions or needed me to clarify something. I am here to help, so please let me know. Thanks!