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Yes, it is about acting in the best way to protect your client. Giving away money would not be in the client's interest. But if I was on the other side I would have to advise my client to refuse such a request - subject to commercial considerations.

because i was acting for the purchaser

It all depends on the contract. In NSW I have drafted special conditions for clients allowing the deposit to be returned in full if the purchase exercises their cooling off period rights.