What Is Earnest Money and How Is It Handled?

Earnest money is a deposit submitted by the buyer to demonstrate serious intent to purchase the property.

Earnest Money Is Typically:

  • Held by a title company

  • Held by an escrow company

  • Held by a closing attorney

  • Held by a brokerage (depending on state requirements)

The purchase agreement will specify how earnest money is handled and under what circumstances it may be refunded or retained.