By David Parks · eXp Realty · The Apollo Group · 2 min read
Earnest money is a deposit that shows a buyer is serious. It is held by a neutral third party, typically a title company, and is credited toward the buyer’s costs at closing.
The amount is negotiated and varies by price and market. It is often a percentage of the purchase price, and your agent can advise what is reasonable for your situation.
Earnest money is protected when you follow the contract’s deadlines and conditions. If you cancel for a reason allowed by the contract, such as an inspection objection or loan issue, within the stated time, you can generally get it back. If you default after deadlines pass, the seller may claim it.
The contract controls what happens, and details vary. Read it carefully and, if you have questions about your rights, ask your agent or a real estate attorney.
This article is general information, not legal, tax, financial or inspection advice. Every home and situation is different, so confirm details with a licensed inspector, lender, attorney or tax professional.
David is a Greater Denver real estate advisor with eXp Realty and The Apollo Group (Colorado broker license FA100103211). He has closed more than $55 million in volume, earned eXp Icon status in 2025, and holds a 5.0 rating on Zillow from 27 verified reviews.
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