Earnest Money Rules by State
Complete guide to earnest money deposit requirements for all 50 states + DC.
Earnest money (also called a "good faith deposit") is money a buyer puts down to show they're serious about purchasing a home. The rules vary significantly by state — from how much is typical, to when it's due, to who holds the funds.
Use this guide to quickly find the requirements for any state, or jump directly to a specific state using the table below.
DocJacket extracts earnest money amounts and deadlines automatically from your contracts.
Quick Navigation
Interactive Map
Click on any state to see detailed earnest money requirements.
Select a State
Click on any state to view earnest money details
Quick Reference Table
| State | Typical Amount | Deposit Deadline | Who Holds | Refundable? |
|---|---|---|---|---|
| Alabama | 1-2% | Per contract | Title/Attorney | Contingent |
| Alaska | 1-3% | Per contract | Title/Escrow | Contingent |
| Arizona | 1-3% | 1 business day | Title/Escrow | Contingent |
| Arkansas | 1-2% | Per contract | Broker/Title | Contingent |
| California | 1-3% | 3 business days | Escrow/Title | Contingent |
| Colorado | 1-3% | Per contract | Title/Broker | Contingent |
| Connecticut | 1-3% | Per contract | Attorney/Escrow | Contingent |
| Delaware | 1-3% | Per contract | Attorney/Title | Contingent |
| District of Columbia | 1-3% | Per contract | Title/Escrow | Contingent |
| Florida | 1-3% | 3 business days | Title/Broker | Contingent |
| Georgia | 1-2% | 1-3 business days | Broker/Attorney | Contingent |
| Hawaii | 1-3% | Per contract | Escrow/Title | Contingent |
| Idaho | 1-3% | Per contract | Title/Escrow | Contingent |
| Illinois | 1-3% | Per contract | Attorney/Title | Contingent |
| Indiana | 1-2% | Per contract | Title/Broker | Contingent |
| Iowa | 1-2% | Per contract | Title/Broker | Contingent |
| Kansas | 1-2% | Per contract | Title/Broker | Contingent |
| Kentucky | 1-2% | Per contract | Broker/Title | Contingent |
| Louisiana | 1-3% | Per contract | Title/Escrow | Contingent |
| Maine | 1-3% | Per contract | Broker/Escrow | Contingent |
| Maryland | 1-3% | Per contract | Title/Escrow | Contingent |
| Massachusetts | 5% | Per contract | Attorney | Contingent |
| Michigan | 1-3% | Per contract | Title/Broker | Contingent |
| Minnesota | 1-3% | Per contract | Title/Broker | Contingent |
| Mississippi | 1-2% | Per contract | Broker/Title | Contingent |
| Missouri | 1-3% | Per contract | Title/Broker | Contingent |
| Montana | 1-3% | Per contract | Title/Escrow | Contingent |
| Nebraska | 1-2% | Per contract | Title/Broker | Contingent |
| Nevada | 1-3% | Per contract | Escrow/Title | Contingent |
| New Hampshire | 1-3% | Per contract | Broker/Escrow | Contingent |
| New Jersey | 5-10% | Per contract | Attorney/Broker | Contingent |
| New Mexico | 1-2% | Per contract | Title/Escrow | Contingent |
| New York | 10% | At contract signing | Attorney/Escrow | Contingent |
| North Carolina | 1-3% | Per contract | Broker/Escrow | Contingent |
| North Dakota | 1-2% | Per contract | Title/Broker | Contingent |
| Ohio | 1-3% | Per contract | Broker | Contingent |
| Oklahoma | 1-2% | Per contract | Title/Escrow | Contingent |
| Oregon | 1-3% | Per contract | Escrow/Title | Contingent |
| Pennsylvania | 1-3% | Per contract | Seller's Broker | Contingent |
| Rhode Island | 1-3% | Per contract | Attorney/Escrow | Contingent |
| South Carolina | 1-3% | Per contract | Attorney/Broker | Contingent |
| South Dakota | 1-2% | Per contract | Title/Broker | Contingent |
| Tennessee | 1-3% | Per contract | Title/Broker | Contingent |
| Texas | 1-3% | 3 days | Title/Escrow | Contingent |
| Utah | 1-3% | Per contract | Title/Escrow | Contingent |
| Vermont | 1-3% | Per contract | Attorney/Broker | Contingent |
| Virginia | 1-3% | Per contract | Title/Escrow | Contingent |
| Washington | 1-3% | 2-3 days | Escrow/Title | Contingent |
| West Virginia | 1-2% | Per contract | Broker/Title | Contingent |
| Wisconsin | 1-3% | Per contract | Broker/Title | Contingent |
| Wyoming | 1-3% | Per contract | Title/Escrow | Contingent |
Common Questions
What happens if earnest money is late?
If you miss the earnest money deadline, the seller may have the right to terminate the contract or seek other remedies. In states like Texas, TREC contracts specifically allow sellers to terminate if the buyer fails to deliver earnest money within the required timeframe. Always prioritize getting your deposit in on time.
Can the seller keep earnest money if I back out?
It depends on why you're backing out and whether you're still within a contingency period. If you cancel during an active contingency (inspection, financing, appraisal) and follow proper notice procedures, you should get your earnest money back. If you back out after contingencies expire without a valid contractual reason, the seller may be entitled to keep the deposit as liquidated damages.
Who decides disputes over earnest money?
The escrow holder cannot unilaterally decide who gets disputed earnest money. Resolution methods include: written agreement between buyer and seller, mediation (required in some states like Georgia), arbitration, or court judgment (interpleader). In Florida, disputes over $50,000 must go to court.
Is earnest money required by law?
No, earnest money is not legally required in any state. However, it's a standard practice that demonstrates buyer commitment. In competitive markets, sellers typically expect earnest money and may not consider offers without it.
What happens to earnest money at closing?
Your earnest money stays in escrow until closing. At closing, it's applied toward your down payment and/or closing costs. The amount is credited to you, reducing what you owe at the closing table.
Can I pay earnest money with a credit card?
Generally, no. Earnest money is typically paid via personal check, cashier's check, or wire transfer. Some escrow companies may accept ACH transfers. Credit cards are rarely accepted because of processing fees and chargeback risks.
Never Miss an Earnest Money Deadline
Upload any contract and DocJacket automatically extracts the earnest money amount, deposit deadline, and escrow holder. Get reminders before deadlines hit.
Last updated: January 2025
Sources: National Association of REALTORS (NAR), Texas Real Estate Commission (TREC), California Civil Code, Florida Real Estate Commission (FREC), Georgia Real Estate Commission (GREC), State-specific real estate commission regulations, Standard contract forms by state