The deposit can be refunded if the contract is not signed. The earnest money is not a deposit, and the deposit penalty is not applicable. However, if your behavior causes losses to the other party, you should bear the liability for fault in contracting. According to Chinese laws, if a party has one of the following circumstances in the process of concluding a contract, which causes losses to the other party, it shall be liable for compensation:
（1） Negotiate in bad faith under the pretext of concluding a contract;
（2） Deliberately concealing important facts related to the conclusion of the contract or providing false information;
（3） Other behaviors that violate the principle of good faith.
[Legal Basis]
In Article 500 of the Civil Code, if a party has any of the following circumstances in the process of concluding a contract and causes losses to the other party, it shall be liable for compensation:
（1） Negotiate in bad faith under the pretext of concluding a contract;
（2） Deliberately concealing important facts related to the conclusion of the contract or providing false information;
（3） Other behaviors that violate the principle of good faith.
