yes seller can withhold signing. happens more often than you might imagine. normally there is a time limit on financing contingency..

Here in Chicago the most I’d be comfortable with holding is a trash out fee if they left trash in the yard.

Follow your state's process in withholding security deposit4a.

I run into dishonest ones all the time who withhold information from clients and this is both on the buyer and seller side.

Since I'm not a US resident, it was agreed that the title company would withhold 15% of the sales proceeds, and I would pay for prepping FIRPTA forms and remittance. 

You'll also want to ensure that your realtor or escrow officer is familiar with the required CA withholding as part of the escrow process. 

The CPA will likely say, "it depends," but your wife could adjust your W2 tax withholdings so you get more of her paycheck every month.If you are really wanting to live for free with a low down payment, California probably isn't for you.

Sorry to hear about this  or if you do withhold a significant sum that they forfeit if they dont move. 

Can't believe there was nothing on BP about this -- how do I get this withholding amount refunded to me?

MLO Classification: W-2 vs. 1099: What is the norm for sponsors, meaning do they  provide a W-2 with tax withholding, use a 1099