What is the ruling on the earnest money paid when the crop, for which the farm was purchased, is destroyed?

The goods, before being taken possession of by the buyer, are under the seller's guarantee. If they perish, the buyer is entitled to reclaim the price. The down payment (earnest money) is part of the price. Therefore, if the buyer is unable to take possession of the farm and it remains under the seller's custody, then it is under the seller's guarantee, and he is obligated to return the down payment. However, if the seller offers to hand over the farm and the buyer refuses to take possession of it, then if the farm perishes, it is under the buyer's guarantee, and he is obligated to complete the payment.

If the contract is for the fruit (of a tree or crop), and it perishes due to a celestial calamity (act of God), then it is the seller's responsibility, and he must return the down payment to the buyer. If it perishes due to a human act, the buyer has the choice between annulling the contract and demanding compensation from the one who caused the damage. If he chooses annulment, he can reclaim the price and the down payment from the seller. If he chooses to uphold the contract, he cannot reclaim the down payment from the seller.