Legal Question in Real Estate Law in Connecticut

The realtor can't keep the deposit in any event. Whether you are entitled to get it back depends on a lot of things. What do you mean by an "inspection failure"? Most contracts have a paragraph where it sets out when you have to have the inspection by, when you have to notify the seller if the inspection discloses problems, what the process is to allow you to negotiate with the seller as to what repairs he's willing to do or not to do. There's usually a time limit in the contract as to when you can tell the seller "We haven't come to an agreement as to the repairs, so I'm cancelling the contract. Please send me the deposit". If you missed any of those dates, or didn't give notice in a timely fashion, you may lose the deposit. Did you have a real estate agent? He/she should have been keeping track of those deadlines.