To write an earnest money check correctly, open your purchase agreement and pull three details: the exact deposit amount, the name of the payee (almost never the seller), and the deadline for delivery. Write the check to that payee for that amount, note the property address on the memo line, sign it to match your bank’s records, and deliver it within the contract window with a written receipt in hand. Get any of those three details wrong and you can stall or lose the deal.
Pull Three Details From the Contract First
Before the pen touches the check, confirm the amount, the payee, and the delivery deadline in the signed contract.
The amount is usually one to three percent of the purchase price. On a $400,000 home, that works out to $4,000 to $12,000. Competitive markets with low inventory tend to push deposits toward the higher end because a larger deposit signals stronger commitment; slower markets may accept one percent or a flat figure. Whatever number you and the seller agreed on, confirm the check matches the signed contract exactly.
The payee is the detail buyers most often get wrong. Contracts direct earnest money to a neutral third party, typically a title company, an escrow agent, or the listing broker’s trust account. Writing the check to the seller is one of the most common mistakes and it can stall the transaction while everyone scrambles to fix it.
The deadline is usually one to three business days after the effective date of the contract. Miss it and you can be in default, giving the seller the right to walk away.
Filling Out the Check Line by Line
Start with the date. Use the current date so the check doesn’t age out before the escrow agent deposits it.
On the “Pay to the Order of” line, write the full legal name of the payee exactly as it appears in the contract. Abbreviations or informal names can cause the escrow company’s bank to kick back the deposit.
In the numeric box, enter the dollar amount with a decimal and two digits for cents, even on a round number. Write $8,000.00, not $8,000. On the written-amount line directly below, spell out the same figure in words. If the two don’t match, the bank won’t automatically reject the check; under the Uniform Commercial Code, the written-out words control over the numeric figures when there’s a conflict.1Cornell Law School. UCC 3-114 – Contradictory Terms of Instrument A mismatch still invites questions and delays, so verify both before signing.
Use the memo line to tie the check to your transaction. Write the property address or the contract reference number so the escrow agent can allocate the funds to the correct file without guessing.
Sign the check exactly as your name appears on your bank account. A signature that doesn’t match your account records can trigger a hold.
Personal Check or Cashier’s Check
A personal check is acceptable for most earnest money deposits, especially smaller ones. The tradeoff is that it draws from your account, so the escrow company has to wait for it to clear before confirming the funds. That clearing window creates a sliver of risk for the seller.
A cashier’s check removes that uncertainty. The bank pulls the money from your account when it issues the check, so the funds are guaranteed on delivery. For larger deposits or competitive offers, your contract may specifically require one. Even when it doesn’t, a cashier’s check can strengthen your credibility with the seller. You can request one at your bank’s teller window with a government-issued ID; most banks charge a small fee, usually under $15.
One practical warning: if your earnest money check bounces, the seller will almost certainly treat it as a breach of contract and may terminate the deal. Confirm the funds are in your account before you write or request the check.
Delivering the Check and Getting Proof
Writing the check isn’t finished until it’s in the escrow agent’s hands with documentation that it arrived.
Common delivery methods:
- Hand delivery to the escrow or title office. Get a signed receipt on the spot.
- Delivery through your real estate agent, which is standard practice in most transactions.
- Overnight courier if you’re out of state, using a trackable service so you have proof of delivery and timing.
Whichever route you use, get written confirmation that the escrow agent received the check. A verbal acknowledgment isn’t enough if a dispute later turns on whether you met the deadline. Real estate licensing rules in most states also require brokers to deposit trust funds into their escrow accounts within a set number of business days, so your agent has their own compliance deadline tied to prompt delivery.
After the deposit, ask for a written receipt or an earnest money escrow letter that confirms the amount, the date of deposit, and the account holding the funds. If you wrote a personal check, the money will typically leave your account within one or two business days after the escrow company deposits it. Watch your bank statement during that window to confirm it cleared, and keep a copy of the receipt and the cleared-check image together in your transaction file.
If the Seller Asks for Proof of Funds
Some sellers, particularly in cash-heavy markets, ask for a proof-of-funds letter alongside your earnest money deposit. This is a document from your bank showing you hold enough liquid assets to cover the down payment and closing costs beyond the mortgage. It’s separate from a mortgage pre-approval letter. If your offer requires one, ask your bank for it a few days before your deposit deadline so it doesn’t hold up the process.
If the Contract Calls for a Wire Transfer Instead
Some contracts require earnest money by wire rather than check. If yours does, treat the wiring instructions as a security matter. Real estate wire fraud costs buyers hundreds of millions of dollars a year. The scam works by compromising an email chain between you, your agent, or the title company, then sending fake wiring instructions that route your deposit to a fraudulent account. By the time anyone notices, the money is gone.
A short discipline protects you:
- Never trust emailed wire instructions. Call the title company or escrow agent on a number you already have on file to confirm the account number, routing number, and account holder name.
- Agree on a verbal code word with your escrow agent at the start of the transaction so they can verify their identity over the phone.
- Treat urgency as a warning sign. Legitimate escrow companies won’t pressure you to skip verification.
- Keep account numbers, Social Security numbers, and bank logins off email entirely.
If the wire instructions you receive look even slightly different from what you were told to expect, stop and verify by phone before sending. A five-minute call can save your entire deposit.
What Happens to the Money Next
When the deal closes, your earnest money appears as a credit on your closing disclosure and reduces what you owe at the table. Depending on your contract and how the settlement agent allocates funds, it can go toward your down payment, your closing costs, or both.2National Association of REALTORS®. Earnest Money in Real Estate: Refunds, Returns and Regulations Keep your closing disclosure and the escrow receipt for your records.
Before closing, the deposit is at risk if you back out without a valid contingency to lean on. The purchase contract usually directs a forfeited deposit to the seller as compensation for taking the home off the market, and the IRS lists forfeited deposits, down payments, and earnest money among the items a homebuyer cannot deduct.3Internal Revenue Service. Tax Information for Homeowners Financing, inspection, and appraisal contingencies in the contract are what let you recover the deposit if the deal falls apart for a covered reason, and each one has its own deadline. Put those dates on your calendar the day you sign, right alongside the deposit delivery deadline you just met.