Do I have right to keep earnest money if the seller's financing falls through?

Question Details: I was involved in a real estate transaction; I am for sale by owner. Days before closing, I was informed that the buyer's co-signer backed out. The agent informed me at that time that it was grounds for me to receive the earnest money. However, the next day he informed me that the bank wrote that because the co-signer dropped out that the buyer was no longer able to receive the loan. Therefore, they get the earnest money back as the sale is contingent upon financing.

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