Earnest Money by State — Timing, Custody, Forfeiture
Earnest money rules are state-specific and TC-relevant. The AI-native transaction coordinator tracks per-state earnest-money custody automatically — see /features/task-engine. This is the AI control plane for real estate compliance.
Earnest money rules vary by state across three dimensions: deposit timing, custody (broker trust account vs title vs escrow), and forfeiture conditions. We've assembled the 50-state reference. Use it to build per-state TC checklists or to brief a new agent moving into a new state.
How earnest money differs by state
Timing. Texas's TREC contract demands 3 business days from execution; California typically requires 3 business days as well; Florida's FAR/BAR allows 3 business days; New York attorney-driven custom varies. Some states allow 'upon acceptance.'
Custody. Some states require the broker's trust account (CA, FL). Some allow title or escrow (TX). Some require attorney escrow (NJ, NY).
Forfeiture. Conditions for forfeiture (breach by buyer, contingency failure) and disbursement procedures vary materially.
State-by-state quick reference
We provide a 50-state quick reference with timing, custody type, governing form, and any quirks. The full 50-state table is below.
Why this matters for TCs
Earnest-money mishandling is one of the top three causes of brokerage trust-account audit findings. Getting it right per state is a compliance moat for the brokerage.
Built-in to ReBillion
The AI-native transaction coordinator extracts the earnest-money clause from the contract, runs the per-state rules engine, generates the deposit-confirmation task, and pings the right counterparty if the deposit is late. End-to-end execution; not just a lookup.
50-state earnest money reference
In most states, earnest money terms are set by the purchase contract, not by statute. Only a few states have a hard default in the standard form or law (e.g. TX, FL, CA, WA, WI, NC, GA, UT, MN); this list is illustrative, not exhaustive. Note that “timing” can mean two different things by state — when the buyer must deliver the deposit, or when the holder must place received funds into a trust account. The values below are customary defaults — always verify against your specific contract and state.
| State | Typical deposit timing | Custody (holder) | Governing form / authority | Typical amount | Forfeiture note |
|---|---|---|---|---|---|
| Alabama | Contract-negotiated; commonly with offer or 1–3 days after acceptance | Listing broker trust account or title/closing co. | Alabama Assoc. of REALTORS sales contract | ~1% or $500–$2,000+ | Refundable within contingencies; at risk if buyer defaults after |
| Alaska | Contract-negotiated; commonly with the offer | Broker trust account or title/escrow co. | Alaska REALTORS Purchase & Sale Agreement | ~1–2% | Refundable within contingencies; at risk on default |
| Arizona | Customarily deposited within ~24–72 hrs of acceptance | Escrow/title company (broker trust also allowed) | AAR Residential Resale Purchase Contract | ~1% common | Refundable during inspection/contingency period; at risk after |
| Arkansas | Contract-negotiated; commonly with offer | Broker trust account or title/closing co. | Arkansas REALTORS Real Estate Contract | ~1% or $1,000+ | Refundable within contingencies; at risk on default |
| California | Within 3 business days after acceptance (RPA default) | Neutral escrow holder (escrow company) | C.A.R. Residential Purchase Agreement (RPA) | 1–3% | Refundable during contingencies; liquidated damages up to 3% if buyer defaults after removal |
| Colorado | Deposit deadline is a filled-in date on the form (often at/near acceptance) | Usually title company; sometimes broker | Colorado Real Estate Commission Contract to Buy and Sell (state form) | ~1%+ | Refundable per contract's objection/deadline dates |
| Connecticut | Small binder with offer; balance at contract signing (a few days) | Attorney trust or broker escrow | Attorney-drafted contract + local REALTOR forms | Binder $1,000 → often ~10% at contract | At risk once contingencies pass |
| Delaware | Contract-negotiated; commonly with contract | Broker, title, or attorney escrow | Delaware Assoc. of REALTORS Agreement of Sale | ~$1,000 up to several % | Refundable within contingencies; at risk on default |
| District of Columbia | Contract-negotiated; commonly with ratified contract | Title/settlement company or broker escrow | GCAAR Regional Sales Contract | 1–5% | Refundable during contingencies; at risk on default |
| Florida | Within 3 days after Effective Date (FAR/BAR default) | Escrow agent (title co., broker, or attorney) | FAR/BAR or Florida Realtors contract | 1–3% (5–10% competitive) | Refundable within inspection period (AS-IS); at risk on default |
| Georgia | Holder must receive within ~5 banking days of Binding Agreement Date | Closing attorney's or broker's escrow | GAR Purchase and Sale Agreement | ~1%+ | Refundable during due-diligence period; at risk after |
| Hawaii | Initial deposit generally upon acceptance / opening escrow | Escrow company | Hawaii Assoc. of REALTORS Purchase Contract (DROA) | ~1%+ | Refundable within contingencies; at risk on default |
| Idaho | Contract-negotiated; commonly with offer | Broker trust account or title company | Idaho REALTORS RE-21 Purchase and Sale Agreement | ~1% | Refundable within contingencies; at risk on default |
| Illinois | Small deposit with offer; increased after ~5-business-day attorney review/inspection | Listing broker trust or title company | Multi-Board Residential Real Estate Contract | Initial ~$1,000 → 3–5% | Refundable during attorney-review/inspection; at risk after |
| Indiana | Contract-negotiated; commonly with offer | Listing broker trust or title company | Indiana Assoc. of REALTORS Purchase Agreement | ~1% or $1,000+ | Refundable within contingencies; at risk on default |
| Iowa | Contract-negotiated | Broker trust, title, or attorney | Iowa Assoc. of REALTORS Purchase Agreement | ~1% | Refundable within contingencies; at risk on default |
| Kansas | Contract-negotiated | Title/escrow company or broker trust | Kansas Assoc. of REALTORS contract | ~1% | Refundable within contingencies; at risk on default |
| Kentucky | Contract-negotiated; commonly with offer | Listing broker escrow or attorney | Kentucky REALTORS / local board Purchase Contract | ~1% | Refundable within contingencies; at risk on default |
| Louisiana | Contract-negotiated; commonly with offer | Title company/notary-attorney or broker | Louisiana Residential Agreement to Buy or Sell | ~1–2% | Deposit treated as earnest money under LA law; at risk on default |
| Maine | Contract-negotiated; commonly with offer or within a few days | Listing broker trust or title company | Maine Assoc. of REALTORS Purchase and Sale Agreement | ~1% or $1,000+ | Refundable within contingencies; at risk on default |
| Maryland | Contract-negotiated; with contract/ratification | Broker escrow or title company | Maryland REALTORS Residential Contract of Sale | 1–5% | Refundable within contingencies; at risk on default |
| Massachusetts | Two-step: small deposit with Offer to Purchase, balance at P&S (~1–2 weeks) | Listing broker escrow or attorney | Greater Boston REBA / MAR Offer + P&S Agreement | ~$1,000 initial → ~5% by P&S | At risk once P&S signed / contingencies pass |
| Michigan | Contract-negotiated; commonly with offer | Listing broker trust or title company | Local board Buy and Sell Agreement | ~1% | Refundable within contingencies; at risk on default |
| Minnesota | Default 3 business days to deposit if contract silent (MN Stat. §82.75) | Listing broker trust account | MN Assoc. of REALTORS Purchase Agreement; §82.75 | ~1–2% | Statutory return by next business day if offer rejected; at risk on default |
| Mississippi | Contract-negotiated | Listing broker escrow or title company | Mississippi Assoc. of REALTORS contract | ~1% | Refundable within contingencies; at risk on default |
| Missouri | Contract-negotiated | Title company or broker escrow | Missouri REALTORS / local Residential Sale Contract | ~1% | Refundable within contingencies; at risk on default |
| Montana | Contract-negotiated | Title/closing company or broker trust | Montana Assoc. of REALTORS Buy-Sell Agreement | ~1% | Refundable within contingencies; at risk on default |
| Nebraska | Contract-negotiated | Title/escrow or broker trust | Nebraska REALTORS Purchase Agreement | ~1% | Refundable within contingencies; at risk on default |
| Nevada | Contract-negotiated; deposited on opening escrow | Escrow/title company | Nevada / GLVAR Residential Purchase Agreement | ~1% | Refundable within contingencies; at risk on default |
| New Hampshire | Contract-negotiated; commonly with offer | Listing broker escrow | NH Assoc. of REALTORS Purchase and Sale Contract | ~1% or $1,000+ | Refundable within contingencies; at risk on default |
| New Jersey | With contract; fully protected during 3-business-day attorney review | Broker trust or attorney trust account | NJ REALTORS Standard Form (attorney-review clause) | Small initial → up to ~10% by closing | Fully refundable during attorney review; at risk after contingencies |
| New Mexico | Contract-negotiated | Title company | NM Assoc. of REALTORS Purchase Agreement | ~1% | Refundable within contingencies; at risk on default |
| New York | With signed contract of sale (downstate); upstate uses binder + attorney approval | Seller's attorney escrow (downstate) | Attorney-drafted contract of sale (NYSBA / local bar) | ~10% downstate; less upstate | At risk once contract signed (few contingencies downstate) |
| North Carolina | Earnest money within 5 days of Effective Date; Due Diligence Fee to seller on effective date | Escrow agent (broker, attorney, or title) | NC Assoc. of REALTORS / NC Bar Form 2-T | EM ~1% + separate negotiable DD fee | EM refundable during due-diligence; DD fee nonrefundable; EM at risk after DD |
| North Dakota | Contract-negotiated | Broker trust or title company | ND Assoc. of REALTORS Purchase Agreement | ~1% | Refundable within contingencies; at risk on default |
| Ohio | Contract-negotiated; commonly with offer | Listing broker trust or title company | Local board Residential Purchase Agreement | ~1% | Refundable within contingencies; at risk on default |
| Oklahoma | Per Oklahoma Uniform Contract; commonly with offer | Title company or broker | OREC Residential Sale Contract | ~1% | Refundable during inspection Time Period; at risk after |
| Oregon | Contract-negotiated; deposited to neutral escrow | Title/escrow company | Oregon REALTORS / OREF Residential Sale Agreement | ~1% | Refundable within contingencies; at risk on default |
| Pennsylvania | Contract-negotiated; commonly within a few business days (staged deposits common) | Broker escrow or title company | PAR Standard Agreement; 49 Pa. Code Ch. 35 | 1–2% (often staged) | Refundable within contingencies; at risk on default |
| Rhode Island | Two-step (offer then P&S), similar to MA | Listing broker escrow or attorney | RI Assoc. of REALTORS Purchase and Sale Agreement | ~1% initial → more at P&S | At risk after P&S / contingencies |
| South Carolina | Contract-negotiated; with offer or within days | Listing broker trust or closing attorney | SC REALTORS Agreement to Buy and Sell Real Estate | ~1% | Refundable within contingencies; at risk on default |
| South Dakota | Contract-negotiated | Broker trust or title company | SD Assoc. of REALTORS Purchase Agreement | ~1% | Refundable within contingencies; at risk on default |
| Tennessee | Delivered within a specified number of days (commonly 1–3) | Holding broker or title escrow | Tennessee REALTORS Purchase and Sale Agreement | ~1% | Refundable during inspection/resolution period; at risk after |
| Texas | Within 3 days after the Effective Date (TREC contracts) | Escrow agent / title company | TREC One to Four Family Residential Contract (Resale) | ~1% (plus separate Option Fee) | Refundable during option period; at risk on default after |
| Utah | Brokerage has 4 calendar days after receipt to deposit into trust; EM often with offer | Buyer's brokerage trust account (or title co. via addendum) | Utah state-approved Real Estate Purchase Contract (REPC) | ~1% | Refundable per Due Diligence/financing deadlines; seller must give 3-day cure notice |
| Vermont | Contract-negotiated; commonly with offer | Listing broker trust or attorney | VT Assoc. of REALTORS Purchase and Sale Contract | ~1% | Refundable within contingencies; at risk on default |
| Virginia | Contract-negotiated; commonly with ratified contract | Broker escrow or settlement (title) company | Virginia REALTORS / NVAR Residential Purchase Agreement | ~1%+ | Refundable within contingencies; at risk on default |
| Washington | Default 2 days after mutual acceptance (Form 21, if blank) | Escrow/closing agent (or selling firm) | NWMLS Form 21 Residential Purchase & Sale Agreement | 1–3% | Refundable within contingencies; at risk on default |
| West Virginia | Contract-negotiated | Listing broker trust or title company | WV Assoc. of REALTORS Purchase Agreement | ~1% | Refundable within contingencies; at risk on default |
| Wisconsin | Default 5 days after acceptance (WB-11, if blank) | Named firm's broker trust account | Wisconsin WB-11 Residential Offer to Purchase | ~1% | Refundable within contingencies; 60-day disbursement rule on disputes |
| Wyoming | Contract-negotiated | Title/escrow or broker trust | Wyoming Assoc. of REALTORS Purchase Contract | ~1% | Refundable within contingencies; at risk on default |
General educational information, not legal advice. Earnest money terms are primarily set by your purchase contract and vary by market, brokerage, and transaction. Timing, amounts, and holders shown are customary defaults, not guaranteed rules. Always verify against your specific contract, your state’s current standard forms, and applicable law, and consult a licensed real estate attorney or broker.
Frequently asked
Is the 50-state data current?
Updated quarterly. Material law changes get an ad-hoc update.
Where does the data come from?
State licensing authorities, REALTOR association forms, and counsel review.
Is this legal advice?
No. It's a TC reference. Consult counsel for legal advice.
Does the tool flag attorney states?
Yes. NJ, NY, MA, CT, SC, GA, DC flagged.
Can I export the table?
The full state-by-state reference table is published on this page. In the ReBillion product, per-state earnest-money rules are applied automatically.
Does ReBillion enforce these rules in product?
Yes. The Task Engine and audit trail run per-state custody and timing rules automatically.
See the AI control plane on your real files.
30-minute live demo with the founders. No sandbox; we run on your contracts.