Earnest Money Explained
Earnest money is a deposit made after your offer is accepted to show the seller that you’re serious about buying the home.
What happens to the money?
It generally becomes part of the funds applied toward your purchase at closing, rather than an additional fee on top of everything else.
When is it due?
In California, the standard residential purchase agreement commonly provides for the deposit within three business days after acceptance, unless the contract specifies another deadline. Always check your agreement instead of assuming you have 24 or 48 hours.
Can you get it back?
Possibly. Whether the deposit is refundable depends on the contract, your contingencies, deadlines, and the reason the transaction ends. Ask your agent to explain those terms before you sign.
Keep your funds secure
Before sending a wire, independently verify the escrow company’s instructions by calling a trusted phone number. Real estate wire fraud is a serious risk.
The takeaway: have your deposit funds accessible when you're ready to make offers, and understand the timing before your offer is accepted.