If the circumstances of the sale were out of your control, you'd have a good chance of winning the suit, but you'd still be paying for a lawyer to go to court for you (so you'd lose money anyway).

Is it a good reference tool in some circumstances, yes, but  overall it is unreliable as a whole.

I have bought 4 rental in last 2 years but all with normal circumstances.

The insurance inspection came back with a few small safety issues with the siding and some mortar around the chimney but the big unforeseen problem was the decrepit rotting garage in the back yard.

I would also, as @Jeff Rabinowitz suggests, run the idea by an attorney just to make sure... since case law and your personal circumstances are important legal factors.

Oh, and I'm not worth listening to under any circumstance.  

If you do not have any more contingencies still valid, your deposit belongs to the seller if you buy the property or not.The dual agent is not a good idea in many circumstances, and this is a perfect example of why.

So do have that behind me.I know how quickly monies can go if there are unforeseen repairs.

Yes, what landed us in this position could happen again. simply because the situation stemmed from a few life circumstances (loss of employment, medical problems, new baby, and loss of vehicle) all in a couple months.

All these factors determine when the down payment/ deposit will be released to the seller.No matter the circumstance it is always best to have a third party hold down payment/ deposit with very detailed instructions in the contract which how the money with be paid out, circumstances for refund, etc...