The case is back now. The seller who gave me a check for the deposit
money has put a stop payment on it and says he will not be able to
give me back the money because the Sales & Purchase was not done
within the deadline. SUmmarizing what happened
I made an offer on a property for x$. I paid 500$ deposit on it. I did
home inspection for 300$ and the issues that came up during the
inspection were very minor and I agreed to take care of it. I was
waiting for the seller to give me the Sales & Purchase. The seller
said he is waiting on the date for the other property (which he was
planning to buy) and once he knows it we will sign the S&P. He dragged
me till the deadline date we put in the offer letter and then came
back and said the offer is not valid anymore because we have crossed
the deadline. Mad at him I spoke with an attorney and the attorney
said he has to either sell the house (or) pay me back the home
inspecton+deposit. The seller gave me both the check but now has put a
stop payment on it. When I asked him why, he says since we didn't do
S&P by deadline I am not elgible for the money. Added to it he says
the buyer has to do the S&P.

So now first I would like to know, should the buyer be doing S&P, is
there any written rules like that. And the next question would be what
should I do now?

Any kind of advice is highly appreciated.

Thanks
Saravana