Earnest Money Deposits
How EMD works, when it is at risk, and how to safely fund your deposit.
What Is an Earnest Money Deposit?
An earnest money deposit (EMD) is a good-faith payment made by the buyer when entering into a purchase contract. It demonstrates to the seller that the buyer is serious about the transaction. The deposit is held by a neutral third party (the title company or real estate brokerage) in an escrow account until closing, at which point it is applied toward the buyer's closing costs or down payment.
How to Fund Your Deposit
Coastal Collective Title accepts earnest money deposits via the following methods:
- Wire transfer - The fastest and most secure method. Always verify wire instructions by phone before sending.
- Cashier's check or certified check - Made payable to "Coastal Collective Title Escrow Account."
- Personal check - Accepted for smaller deposits, subject to clearance time.
Wire Fraud Warning
Criminals target real estate transactions by sending fake wire instructions via email. Before wiring any funds, always call our office at 813-544-8626 to verify the wiring instructions. We will NEVER change wire instructions via email, text, or voicemail.
Read Our Full Wire Fraud Alert →When Is Your Deposit at Risk?
Your earnest money is typically protected during the inspection period specified in the contract. If you cancel within that window for a reason covered by the contract, you receive a full refund. After the inspection period, your deposit may be at risk if you fail to close without a contractual reason.
Common situations where the buyer's deposit is protected include financing contingencies (if the loan falls through), appraisal contingencies (if the property does not appraise), and title defects that cannot be resolved. Always review the specific contingency language in your contract with your real estate agent.
Frequently Asked Questions
How much earnest money should I put down?
In Tampa Bay, earnest money deposits typically range from 1% to 3% of the purchase price. The amount is negotiable and specified in the purchase contract. A larger deposit signals a serious buyer and can strengthen your offer in competitive situations.
When is my earnest money deposit due?
The earnest money deposit is typically due within 3 business days of the effective date of the contract (when both parties have signed). The exact deadline is specified in your purchase agreement.
Can I get my earnest money back?
During the inspection period, buyers can typically cancel the contract and receive a full refund of the earnest money. After the inspection period ends, the deposit may be at risk depending on the terms of the contract. If the buyer defaults, the seller may be entitled to the deposit as liquidated damages.
Who holds the earnest money deposit?
In Florida, the earnest money deposit is held by a licensed escrow agent, typically the title company or the listing real estate brokerage. At Coastal Collective Title, all escrow deposits are held in FDIC-insured trust accounts with strict reconciliation controls.
Ready to Send Your Deposit?
Contact us for secure wiring instructions. Always verify by phone before sending funds.
Call 813-544-8626