DFWCityhomes / What is earnest money?

How Can We Help?

< Back
What is earnest money?

A Buyer typically offers an amount of money called Earnest Money as a good faith deposit towards the purchase of a home. The Earnest Money is deposited at the Title Company and held until closing and is credited to the Buyer for the purchase of the home. An amount around 1% of the contract price is respectable and the greater the amount the greater the negotiating position.

What happens if the contract is terminated?

As simple as it sounds, there are many convoluted circumstances that determine which party receives the Earnest Money if the contract is terminated. During the Option Period, the Buyer can receive the return of the Earnest Money if they terminate without the consent of the Seller. After that time, both Buyer and Seller must agree to how it is handled or it stays at the title company.

How are disputes resolved?

There are various legal remedies and procedures to handle disputes over Earnest Money when a contract terminates. In my opinion not backed by fact or statistics, the Buyer gets the Earnest Money back 99% of the time unless they are willing to give or share it with the Seller. Of course, this is a contract issue and every party facing contract termination should consult an Attorney for advice. By law, a broker like myself, or agent is not qualified to provide legal advice and opinion.

What happens if the earnest money is not released?

The reason the buyer usually gets the earnest back is because it creates an unresolved contract. The dispute creates a “Cloud” over the title of the property and the Seller is usually unable to sell the property to anyone else until the dispute is resolved. See the FAQ post “What is Earnest Money? Who gets to keep it? ” for further discussion.


Notice: This website contains general information about possible legal and financial matters. The information is not advice, and should not be treated as such. You must not rely on the information on this website as an alternative to legal or financial advice from your attorney, accountant, or other professional legal services provider. If you have any specific questions about any legal and financial matter you should consult your attorney, accountant, or other professional legal services provider


Our Track Record

I’m excited to announce that after 18 years of providing dedicated service, our clients have collectively saved over $10,000,000 in commissions! Among these savings are over $1,100,000 for clients who found unrepresented buyers and were able to avoid any selling costs. On top of that, we’ve distributed more than $330,000 in incentive rebates to over 100 satisfied buyers. These remarkable achievements are a true testament to our commitment to providing high-quality, cost-effective real estate services to our clients.

Tod G. Franklin – Realtor®, Broker, Owner, and multi-million dollar producer at DFWCityhomes

Our MLS Association Partners

CCAR Corpus Christi Association of Realtors Multiple Listing Service MLS
GTAR Greater Tyler Association of Realtors Multiple Listing Service MLS
Lubbock Association of Realtors Multiple Listing Service MLS

DFWCityhomes is an established and highly regarded Flat Fee MLS Listing Service company in Texas. We have been providing dedicated service for almost two decades delivering personalized service to each client. As the best Flat Fee MLS Listing Service in Texas, we offer affordable and excellent service, while our track record showcases our commitment to professionalism, integrity, and customer satisfaction.

Visit our MLS listing comparison chart and Flat Fee MLS Listing Services to see a detailed breakdown of the different plans and their features.

You can Contact Us or call (214)-207-0210 to speak with a Realtor® and find out how we can save you time and money.