Earnest money is a good faith deposit made by a buyer usually held with a neutral 3rd party such as a title company. The amount of earnest money deposited is negotiable between a buyer and seller. A lot of buyer's agree to around 1% of the purchase price as an earnest money deposit but it's fully negotiable. There may be contingencies in the contract that a seller must meet in order to avoid a buyer terminating and getting a refund of their deposit. Once all contingencies have been met and all parties agree to close, the earnest money deposit will be a credit towards your closing costs/down payment at closing.

The payment of earnest money is usually made within a few days after the seller accepts your offer. The specific timeline for when earnest money is due can vary depending on local customs, the terms negotiated between the buyer and seller, and the requirements outlined in the purchase agreement or contract.

Every title company is different. With our title company you have several options. Please make sure your payment information matches the names listed on the contract.

1. A check, cashiers check or money order can be mailed or dropped off to our location at 239 Veterans Parkway Suite B Murfreesboro, TN 37128. We have a 24/7, locked, secured, drop box if you want to drop off a check.

2. You can also wire us the money. You will need to call our office for wire instructions, we do not email these for security purposes.

3. Use the Earnnest App. Your real estate agent or us can send you an invite link to safely connect with us and send the earnest money. Earnest usually charges a small convenience fee.

*Never bring cash to our office. We don't carry any cash and all money needs to be traceable. This is why we only allow the three options above.

We are sorry to hear that your real estate contract has terminated. Please notify us of the contract being terminated. Upon a mutual release agreement signed by all sellers and buyers we will release the earnest money according to the release form instructions. If the earnest money deposit was agreed to be released to the buyer we will contact you as the buyer to set up the most convenient way for you to get your money back. Our title company does not charge any fees for holding earnest money and we don't deduct any fees for refunds.

If the earnest money is disputed and the courts need to be involved there may be fees deducted from the earnest money.

At closing, the earnest money can be applied towards the down payment or closing costs, effectively reducing the amount of money you need to bring to the table to complete the purchase.

Earnest money is not always automatically applied towards the purchase price. The terms of the purchase agreement or contract will dictate how the earnest money is handled at closing. In some cases, if the seller agrees, the earnest money may be refunded to the buyer or used to cover specific expenses if the sale falls through due to reasons outlined in the contract.