Making an offer on a home in Texas? One term you'll hear right away is earnest money. Here's the quick version of what it is and how it works.
What it is
Earnest money is a good-faith deposit. It shows the seller you're serious about buying the home.
Who holds it (hint: not the seller)
Your earnest money is held by the escrow agent named in your contract, usually a title company. It doesn't go to the seller.
When it's due
On the standard TREC resale contract, earnest money is typically due within 3 days after the effective date. Always check the deadline in your own contract.
How much to put down
Texas law doesn't set an amount. It's negotiable, and it's part of your offer strategy.
What happens at closing
At closing, your earnest money is credited toward your down payment or closing costs.
Have questions about buying anywhere in DFW? Send me a message or call or text me at 602-214-3584. I'm happy to walk you through it.
General information only, not legal advice. Contract terms and local rules vary. Talk to a real estate attorney for legal questions about your situation.