So you will not be placed in an uncomfortable position when you purchase a property, an understanding of the earnest money deposit is of the utmost importance. At the time a written offer is initiated, you will be required to include a personal check, cashier’s check, or cash with your contract offer. The amount is deposited in the listing broker’s escrow account within 24 hours (state law requires this). This amount is credited to the buyer as partial down payment and represents your intent to purchase the property. If the offer is not accepted, this amount is returned to you (there may be a slight delay, since your check must clear the escrow account before a refund check can be written back to you). Depending on the price of the property, you should anticipate a minimum of $1,000 for your earnest money check. Also, in the event that you do not qualify with a lender for a new loan, the earnest money is refunded to you provided the sellers are given notice regarding the lender’s disapproval.

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