Anyone familiar with real estate law ?

If the appraisal is low, the Buyer has only one recourse. pay the difference, or the lender will deny the loan, the deal is dead. You have to be given the chance to cover the shortage. but, if you can't, the deal is dead. the seller can negotiate a new deal.

(I have been selling since 1993, over 1000 transactions)

I get all that, and 1 I don't want to pay the gap, and 2 I don't have the cash for it

BUT, untill he signs the paper releasing my deposit, I am tied to him

Only makes sense to me that would go both ways