If we decide to back out of escrow, will we lose our EMD?

[Eric Asatryan]

Hello fellow members, I just accepted a counter offer for a condo purchase earlier today. SMCO terms stated buyer has to pay 10K above appraisal if it comes in lower than offered price (what we are hoping for). BCO was sent with a revised offer of 425K, my buyer is willing to proceed if appraisal comes back at 390-400K. Two other units in the complex are under contract for 390-399K, both appraised around listing price. If we decide to back out due to appraisal coming back higher than we expect, will we lose our earnest money? Earnest is a total of 11K+, I've been told if escrow process has not passed the 17 day mark we should be in the clear to get our deposit back per cancellation. I just want to be sure as I'm a fairly new realtor, if anyone could provide some clarity I would greatly appreciate it. Thank you in advance.