Earnest Money in De Pere: How It Works

Have you ever wondered what happens to your earnest money once your offer is accepted? You are not alone. In De Pere and across Brown County, this good-faith deposit can feel confusing because the outcome depends on the contract. In this guide, you will learn what earnest money is, who holds it, when it is refundable, and practical steps to protect yourself. Let’s dive in.

Earnest money basics

Earnest money is a good-faith deposit you include with your offer to show you are serious about buying. If the sale closes, it is credited to your down payment or closing costs. If the deal does not close, what happens to the funds depends on the purchase agreement and the reason for the cancellation.

You will agree on the amount when you write your offer and identify who holds the funds and the refund rules. After acceptance, you typically deliver the deposit within a short window, often 24 to 72 hours, as stated in the contract.

Who holds your deposit in De Pere

In our local market, earnest money is usually placed in a trust or escrow account. Common holders include the listing or buyer’s brokerage, a title company’s escrow department, or, less commonly, an attorney’s trust account. Brokers and title companies must keep client funds in regulated trust accounts and follow written instructions in your contract.

Always ask for a written receipt that confirms the amount, date received, the escrow holder’s name, and the account type. Keep this with your transaction records.

Contract rules that control refunds

Your purchase agreement sets the ground rules. Standard Wisconsin forms identify the escrow holder, the deadline for delivery, and the remedies if either party defaults. Many agreements also state that the escrow holder may only release funds with a mutual written release or a decision from mediation, arbitration, or a court.

Common contingencies

• Inspection: You can cancel within the inspection period if issues are not resolved. In that case, your earnest money is generally refundable.
• Financing: If you cannot secure a loan despite good-faith efforts and by the deadline, you may cancel and recover funds if the contract allows.
• Appraisal: If the appraisal comes in low and the parties cannot agree on a cure, the contract may permit cancellation with a refund.
• Title: If title defects are not cured within the contract timeline, you may be able to terminate and receive your deposit back.

Typical outcomes

• Cancel within a valid contingency and deadline: Refund is typically due to the buyer.
• Buyer default after contingencies are removed: Seller may be entitled to the earnest money, often under a liquidated damages clause.
• Seller default, such as refusing to close: Buyer generally recovers the deposit and may have other remedies as allowed by the contract.
• Disputes: The escrow holder usually keeps funds until there is a mutual release or a written decision through mediation, arbitration, or court.

Liquidated damages vs. actual damages

Many Wisconsin purchase agreements include a liquidated damages clause. This states that if the buyer defaults, the seller keeps the earnest money as the agreed remedy. If such a clause is not included, the seller may need to prove actual damages or seek other remedies. The exact outcome depends on your contract.

How much to offer in De Pere

There is no fixed amount by law. For lower-priced homes, you often see flat deposits from a few hundred to a few thousand dollars, such as 500 to 5,000 dollars. For higher-priced homes, a percentage is common, roughly 1 to 3 percent of the purchase price.

Local market conditions in De Pere influence strategy. In a competitive market, you might offer more to strengthen your offer. In a slower market, smaller amounts are more common. Ask your agent for current norms based on recent local sales.

Timing, delivery, and receipts

Your contract sets the delivery timeline, often within 24 to 72 hours after acceptance. Larger deposits are commonly delivered by wire transfer or certified funds. Always request a receipt that confirms who holds the funds, the amount, and the date received.

To reduce wire-fraud risk, verify wiring instructions directly with the brokerage or title company. Call a known office number to confirm details before sending funds. Do not rely only on email.

Buyer tips

• Keep inspection, financing, appraisal, and title contingencies clear and track all deadlines.
• Avoid very large non-contingent deposits unless you accept the added risk.
• Confirm the escrow holder’s contact information and that your funds are in a trust account.
• Save all receipts and written communications.

Seller tips

• Confirm the earnest money has been delivered and cleared before relying on it.
• Use clear instructions about the escrow holder and disbursement process in the contract.
• If a buyer defaults and you plan to claim the deposit, consult your broker and follow the contract steps for release.

Handling disputes

Many contracts require mediation or arbitration before litigation. Escrow holders keep funds in trust until there is a mutual release or a written decision. Keep documentation, such as inspection reports, lender denials, and emails, to support your position.

Quick scenarios

• Buyer cancels after a failed inspection within the deadline: Refund typically goes to the buyer.
• Appraisal comes in low, no agreement is reached, and appraisal contingency applies: Refund typically goes to the buyer.
• Buyer cannot get financing by the deadline despite good-faith effort and financing contingency applies: Refund typically goes to the buyer.
• Buyer walks away after contingencies are removed without a contractual right: Seller may be entitled to the deposit under liquidated damages language.
• Seller refuses to close without cause: Buyer generally recovers the deposit and may pursue other remedies allowed by the contract.

Final thoughts and next steps

Earnest money is simple in concept but highly dependent on the details of your contract. Your best move is to set clear contingencies, meet deadlines, and keep good records. If you have questions about local norms in De Pere or how to structure a competitive offer while protecting your deposit, you can get personalized guidance.

Ready to move forward with clarity and confidence? Connect with Becky Buckland for local insight and a plan tailored to your goals.

FAQs

What is earnest money in a De Pere home purchase?

• It is a good-faith deposit you include with your offer, held in escrow and credited to your closing funds if the sale closes.

Who holds the earnest money in Brown County, WI?

• Typically a brokerage trust account, a title company escrow, or less commonly an attorney trust account, as written in your contract.

When is earnest money refundable for buyers?

• It is generally refundable if you cancel within a valid contingency and meet all deadlines outlined in the purchase agreement.

How much earnest money is typical in De Pere?

• There is no fixed rule. Flat amounts from 500 to 5,000 dollars are common for lower-priced homes, and about 1 to 3 percent for higher prices.

What happens if a buyer defaults after contingencies are removed?

• The seller may be entitled to the earnest money, often under a liquidated damages clause stated in the contract.

How do escrow holders release earnest money during a dispute?

• They usually require a mutual written release or a written decision from mediation, arbitration, or a court before disbursing funds.