I actually had this happen on my own personal residence once.  The buyer decided she didn't like it without my furniture in it.  I kept the deposit and resold the house in 5 days.  It still cost me one extra mortgage payment, which was more than offset by the deposit.  This is one example of what deposits are intended to protect the seller from... and why small deposits are not acceptable.

I've seen it happen before, with the same results as Carol Williams 

It depends upon what they find during the walk through thats unacceptable to them. If its just that there are boxes, debris etc left by the seller I call the Sellers agent and ask for the issue to be corrected. If the finished basement is underwater it could be a deal breaker. I always try to have my Buyer do two walk throughs. One about a week prior to the closing and one the day before the closing to make sure any issues found on the first walk through have been remedied.

Good morning Dorie. I'm sure that can be a challenge. I supposed the big question, is it something that can be corrected for the buyers satisfaction or is it an excuse to get out of the transaction.

A wonderful Thanksgiving to you and yours.

Dorie Dillard - just make a list and hand it over to the listing agent!

You can't do much about it anyways, I think.

When this happens, it's usually either a surprise that the seller tried to hide or something the seller was supposed to take care of and didn't.  And usually we just work it out.

It all depends on what the problems are. I would work hard to get them resolved.

I actually like to do the walk through before they get there to avoid them finding anything out of place. When it does happen, contacting the listing agent and making things work

I find out what the issues are and go from there

With silk gloves, a walk in the park followed by lunch. It will work itself out

if the buyer doesn't close, that's a deposit lost...and a home sold again....

Simple.  Fill out the final walk thru with their concerns, and present to the listing agent.  If they do not fix, serve cure notice.  Mean while I contact title and let them know we will not be closing on time because of X.   I work mostly with buyers, I can't remember the last time a buyer didnt accept the final walk thru, as majority of the time they want in.  The last one was upset that the seller left nail holes in walls.  Hey, opinions vary and not my final walk thru, or my house but the client(S) I represent.

Depends on the reason. The final walkthrough's SOLE purpose is to ascertain that the home is in substantially the same condition as at contract/that agreed-to repairs were done/agreed-to appliances left in the home/home cleared of debris per Contract. If there is a seller breach of contract, in AZ we might deliver a Cure Notice to seller to resolve it, if there was sufficient time to cure and not be in breach ourselves on the COE date; otherwise the buyer would be directed to legal counsel.
If the buyer had another issue not related to the deal . . . get the broker involved and admonish buyer that deposit could be forfeit if failure to close constitutes breach on their part.

I write down their issues and make the closing agent and the sellers agent aware of the issues.  Hopefully, we can reach an agreement.  If not, I advise parties to seek the council of an attorney.

If it is due to items not repaired or new damage, suggest an escrow . If they just have decided not to close and walk away, I tell them to seek legal council to find out what ramifications they may incur.

Damage is easy to solve, other problems have come to a loggerhead for me Dorie Dillard 

Delicately! I always assure them it is an easy fix and then I make it happen.

Hasn't happened to me yet..  You did catch the YET didn't you?

I have one who released all the contingencies and still squable with lender not wanting to close saying the interest rates was not good. He lost the deposit.

Much depends upon the reasons. Clear communication with all parties is the next step if demands are being made.

Dorie,

With a lot of kindness, hearing their side of the story and seeing what can be done.  A

The buyer would be referred to the buyer's legal counsel to determine the legal implications of such a decision.  Legal counsel handles the actual closing in Ontario.

If trivial matters (i.e., clean up, dirty walls), talk it out with Buyers and then contact Listing Agent to remedy.  If serious concerns, I would be sure their concerns are forwarded to their attorney, in writing, immediately and copied to other agent/attorney.  It is usually quite close to closing, so I would make sure all parties are notified and given notice of need to resolve these issues. 

If trivial matter, I would be questioning whether situation is Buyer's remorse and they are trying to get out of it.  However, I am VERY upfront with Buyers, when they are ready to make an offer, that they need to scrutinize the home and how it will work for them while in there prior to offer and during inspection.  I remind they are making major purchasing decision with only being in home a few times, so they best be sure. 

Dorie Dillard If it is something that wasn't done as a result of the inspection, it is usually ironed out at the settlement table between the buyer and the seller.

Never had that happen, time for some questions as to Why.

Dorie - Write up the concerns and present to the listing agent.

I would try and do anything I could to save the deal, especially if it is not that big of an issue, and your buyers really do want the home. I have had some things come up, but they have always been worked out.

A chill went down my back when I read this question, Dorie. Thankfully, that's never happened to me but once. I had a new construction buyer who suddenly decided he didn't like the lot one day before closing. The builder gave him his money back, sold the home for $10K more than our contract, and 3 years later these homes are selling at a 20% premium. This buyer made a huge mistake. (Although I did sell him another home a year later for much more money.)

 Good Thursday morning Dorie. I don't know! I know that there will be a lot of pissed off folks!

I have not had that happen yet.

Fortunately I have never had to deal with that.

#1 Determine if buyer and seller are to be at same location for closing

#2 Measure level of importance. (litter on floors, removed item silhouettes, wall punctures, missing appliances)

#3. Call listing agent 

#4. Resolve issue with resources available.