What if I don't sign cancellation and release of escrow?

[Patrick Philip]

Somebody put an earnest deposit down, then backed out. I had to take it off the market and had realtors refuse to "waste their time" showing the property because it was pending under contract. The buyers agent wants me to sign a release of escrow back to the buyer.

What if I don't sign it? Can I keep it? Shouldn't I be compensated for them having me take the property off the market?

[Ned Carey]

Lots of good points here but the most important to you and anyone else reading along:

Read the contract! 

The contract is what determines what happens in a default. Not all contracts are the same. Although in most areas Realtors will use a  common realtor created contract. Even these realtor contracts vary from area to area. If you are entitled to keep the deposit then you may have to go to mediation to get it.