[quote=spdrun]Why was the broker/seller allowed to keep the deposit, though? Seems that there would be a default expectation of a house being delivered vacant (unless otherwise stated), and the buyer should have been able to sue for the deposit back.[/quote]
There is no “default expectation.” It has to be marked or written on the offer to purchase form.
(Not sure, but the newer CAR forms may have a box to check for this.)