Earnest Money Deadlines Demystified: When and How to Submit Your Deposit
Understanding Earnest Money Deadlines
When you make an offer on a home, earnest money signals your seriousness. This deposit is typically due soon after your offer is accepted, but exact timing can vary by region and contract terms.
What Is Earnest Money?
Earnest money is a refundable security deposit held in escrow. It protects the seller if you back out without a valid contingency. Once your sale closes, this amount usually applies toward your down payment or closing costs.
Typical Deadlines
- 1–3 business days: Most contracts require earnest money within this window after acceptance.
- Agreement date: Some markets tie the deadline to the date on the purchase agreement.
- Custom dates: Negotiable between buyer and seller.
How to Deliver Earnest Money
- Choose payment method (wire transfer, certified check, or electronic deposit).
- Verify recipient details (escrow company or title agent).
- Confirm receipt with your agent and get an escrow statement.
“Late or missing earnest money can be deemed a contract breach, risking your offer.”
Common Pitfalls & Tips
- Don’t wait until the last minute—bank delays happen.
- Double-check deadlines in your purchase agreement.
- Keep proof of transmission (receipt or confirmation email).
What If You Miss the Deadline?
Failing to deliver earnest money on time may lead to:
- Seller terminating the contract
- Loss of your deposit if contingencies don’t apply
- Lower negotiating leverage
Statistic: In some markets, over 20% of contracts face delays due to funding timing issues.
Final Thoughts
Stay proactive, communicate with all parties, and review your purchase agreement carefully. Submit earnest money promptly to maintain credibility and protect your chances of closing on your dream home.
The post Earnest Money Deadlines Demystified: When and How to Submit Your Deposit appeared first on BuyOrSellYourHome.com.
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