Earnest money is usually due within one to three business days after both the buyer and seller have signed the purchase agreement. The exact deadline is written into the contract itself, and the deposit goes to the escrow or title company named there, not to the seller directly. If you’re wondering when you pay earnest money on a home purchase, the contract you just signed is the first and best place to look.
When the Clock Starts
The deadline runs from mutual acceptance, the moment both parties have signed the purchase agreement. From that point you typically have one to three business days to get the funds into the hands of the escrow or title company.
Business days exclude Saturdays, Sundays, and federal holidays. If your contract reaches mutual acceptance on a Friday evening, the first business day is usually the following Monday. A three-business-day clock that starts Friday night runs through Wednesday, not through the weekend.
Read the exact language in your contract rather than relying on the general range. Some agreements specify calendar days instead of business days. Some count from the date of the last signature; others count from a separately defined effective date. The window your agent quotes you may be the local norm, but the contract controls.
What Happens if You Miss It
Many purchase agreements include a “time is of the essence” clause. Under that language, missing the earnest money delivery date counts as a material breach of contract, giving the seller the right to terminate the deal or pursue damages. Courts generally take these provisions seriously, though some may allow a brief window to cure the breach if strict enforcement would be clearly unfair.
You can’t fix a missed deadline retroactively. If you realize before the deadline that you won’t make it, call your agent immediately and ask about a written extension. An amendment signed by both parties before the original deadline passes can move the date; a phone call or email after the fact cannot. The amendment should reference the original contract, state the new deadline, and confirm that all other terms remain unchanged.
Once the escrow company receives your deposit, they issue a receipt confirming the funds are in hand. Get a copy and send it to your agent. That receipt is your proof you met the deadline.
How to Get the Money There on Time
Your purchase agreement names the escrow or title company holding the deposit and includes instructions for sending funds. The common delivery methods differ in speed and in the paper trail they leave:
- Wire transfer is the fastest. You initiate it through your bank’s online portal or at a branch using the escrow company’s routing number, account number, and your file or transaction number.
- A cashier’s check is issued and guaranteed by your bank. You can hand-deliver it to the title company or send it by overnight courier.
- A personal check is accepted by some escrow companies, but it may take longer to clear, and some sellers or agents prefer guaranteed funds.
- Specialized real estate payment platforms use identity verification and encrypted transfers designed for closings.
Pick a method that fits inside your deadline with room to spare. A wire sent at 4:55 p.m. on the last business day may not post until the next morning, and a cashier’s check that needs an overnight shipment leaves no margin if the bank line is long.
Verify Wiring Instructions Before You Send
Wire fraud targeting real estate transactions is one of the fastest-growing financial crimes in the country. Criminals hack into the email accounts of real estate agents, lenders, or title companies and send buyers fake wiring instructions that look nearly identical to the real ones. Once money reaches a fraudulent account, recovery is extremely difficult.
As soon as your offer is accepted, get your escrow officer’s name and direct phone number in person or from a verified source and write it down. Before wiring any money, call that number and verbally confirm the wiring instructions. Do not trust instructions received only by email, even if the email appears to come from your agent or title company. After sending the wire, call the escrow officer again to confirm the funds arrived in the correct account.
If you want to remove wire fraud risk from the transaction entirely, get a cashier’s check from your bank and hand-deliver it to the title company’s office. That is slower, but it closes off the possibility of electronic interception. Some title companies also use digital verification platforms that validate account details and flag discrepancies before a transfer goes through.
Split Deposits and Staged Payments
Not every transaction follows a single-deposit timeline. Some purchase agreements use a split earnest money structure: a smaller initial deposit is due at signing, and a larger second deposit is triggered after a specific milestone. The second payment often comes due after the inspection contingency clears or after mortgage pre-approval is confirmed in writing.
This structure limits a buyer’s financial exposure during early due diligence. If the inspection reveals dealbreaking problems, only the smaller initial deposit was at risk. The seller still gets meaningful assurance through the larger second deposit once the deal clears its first major hurdle.
Every detail of a split arrangement must be written into the contract to be enforceable. If you clear the triggering contingency but miss the deadline for the second deposit, you risk defaulting on the agreement and losing the initial deposit you already paid. Track the second-deposit deadline the same way you tracked the first.
How Much You’ll Need Ready
Your purchase agreement spells out the exact deposit amount, but the standard range runs from 1% to 5% of the home’s purchase price. On a $400,000 home, that works out to somewhere between $4,000 and $20,000. The amount depends more on local market conditions than anything else. In competitive markets where sellers see multiple offers, a larger deposit signals stronger commitment and can give an offer an edge. In slower markets, sellers are more likely to accept deposits on the lower end.
No federal law sets a minimum or maximum. The figure is negotiable between buyer and seller. Your real estate agent can tell you what’s customary in your area. Just don’t confuse the earnest money deposit with your down payment: earnest money is a fraction of the total you’ll bring to closing, and it functions as a good-faith pledge that you intend to follow through on the purchase. At closing, the deposit is credited toward your down payment or closing costs, so it isn’t an additional cost on top of what you already owe.1Consumer Financial Protection Bureau. Mortgages Key Terms
Have the funds liquid and ready in the account you’ll pay from before you sign the purchase agreement. Moving money between accounts, waiting for a transfer to settle, or ordering a cashier’s check all take time you may not have once the clock starts.