From NAR
NAR’s Consumer Guide to Escrow and Earnest Money is a useful resource for buyers who may not fully understand what happens after an offer is accepted.
The guide explains what earnest money is, why it’s submitted with an offer, and how those funds are typically held in escrow until closing. It also outlines what can happen to that money if a transaction moves forward, falls through, or is canceled under the terms of the contract.
For REALTORS®, this guide can help make one of the more confusing parts of the transaction easier to explain. Clear information about deposits, timelines, and contract terms can help buyers feel more confident as they move through the process
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