The buyer's earnest money is sent to the Designated trust account holder and therefore, a cancellation of the purchase agreement and a refund of the earnest money is handled as you normally would.
Please reach out to the broker or closing company that is holding your buyer's earnest money, turn in signed cancellation and request a refund. One additional benefit of TrustFunds, is that the DTAH has the capability to electronically refund the earnest money to the buyer, thru TrustFunds if they wish. If they use TrustFunds for the refund, the returned payment will be tracked and statuses updated in your TrustFunds Agent account. The refund can only be sent back to the same bank account that was used to make the payment. Just like the incoming payment, the buyer will see the money settled in their account on the 4th business day, after the broker or title company submits the refund.
The buyer's payment does have to be Settled, for the DTAH to refund the money. Please check the payment status in your account.