Buying a home in Greenville often comes with one early question: what happens to your earnest money deposit? You want to show sellers you are serious without risking more than you should. When you understand how earnest money works here, you can write a stronger offer and protect your funds from start to finish. In this guide, you will learn who holds the money, when it is refundable, how contingencies and deadlines work, and how to avoid common pitfalls. Let’s dive in.
Earnest money basics in Greenville
Earnest money is your good-faith deposit that goes with your offer. It tells the seller you intend to buy and helps secure the home while you work through inspections, financing, and other steps. The amount is negotiable and is written into the purchase agreement.
In South Carolina, the escrow holder is named in the contract. It can be the buyer’s broker, the listing broker, a title company, or a closing or real estate attorney. Many closings in our area involve attorneys or title firms, so you will often see an attorney or title company listed as the escrow agent. If the sale closes, your deposit is credited back to you on the final closing statement and applied to your down payment or closing costs.
How much should you offer?
There is no required percentage. In many markets, buyers put down a few thousand dollars or roughly 1 percent of the price. In competitive situations or for higher-priced homes, buyers may offer more to stand out. In Greenville, the right number depends on price point and how hot the listing is.
A deposit that is too small can weaken your offer. A deposit that is too large raises risk if you plan to waive contingencies. Work with your agent to set an amount that fits the property and your comfort level.
When to pay and who to pay
Your purchase agreement sets the exact deposit amount, the escrow holder, and the deadline for delivery after the offer is accepted. Make sure you deliver on time to avoid being in default. Always request and keep a written receipt from the escrow holder.
Ask how you will deposit the funds. You may be able to deliver a check, cashier’s check, or wire. Confirm whether the escrow account is interest-bearing and who receives any interest. Many short-term escrow accounts do not pay interest to buyers unless your contract says otherwise.
Contingencies and your refund rights
Common buyer protections
Most South Carolina contracts include buyer protections that can allow a refund if you terminate properly and on time. These often include inspection, financing, appraisal, clear title, and any required seller disclosures. If you use a contingency as written and send the right notice within the deadline, you typically get your deposit back.
Timing controls your options
Deadlines matter. Once your contingency periods expire or you sign to remove them, your deposit may become nonrefundable if you back out later without a contractual reason. Keep every date and notice method exactly as the contract requires so you preserve your rights.
What happens at closing
If everything proceeds to closing, your earnest money is shown on the closing statement and credited toward your cash due. Bring this up with your lender and closing attorney so your cash-to-close estimate reflects the credit correctly.
If something goes wrong
You cancel under a contingency
If you cancel within a valid contingency and follow the notice rules, the escrow holder should release your deposit back to you according to the contract. Keep copies of inspection reports and any lender letters that support your contingency.
Buyer default without a contingency
If a buyer breaches the contract without a valid reason under the agreement, the seller may have remedies. One common remedy is liquidated damages if the contract includes that clause, which can allow the seller to keep the deposit. The exact outcome depends on the contract language and facts.
Seller default
If a seller cannot or will not close as agreed, the buyer may seek a refund of earnest money and could pursue other remedies such as specific performance. Outcomes depend on the contract terms and circumstances.
Disputes and release process
If the buyer and seller disagree on who should receive the deposit, the escrow holder may need written mutual instructions to release funds. Some contracts require mediation or arbitration. If that fails, the escrow holder can file an interpleader so a court decides. This takes time and money, so many parties choose to negotiate a release.
Protect your deposit: practical steps
For buyers
- Confirm the escrow holder named in your contract and ask for clear deposit instructions.
- Deliver funds by the deadline and get a written receipt from the escrow holder.
- Track every contingency date and send notices exactly as the contract requires.
- Keep documentation that supports any termination, including inspection findings and lender communications.
- Use secure wiring practices. Call a known, verified number for the title company or attorney to confirm instructions. Do not rely on email-only directions, and treat any last-minute changes as suspicious.
- Ask if the account is interest-bearing and how any interest is handled.
For sellers
- Confirm receipt of the buyer’s deposit and the identity of the escrow holder.
- Verify that the funds have cleared per the contract.
- Review the remedies section in your contract and consult a Greenville real estate attorney before attempting to keep a buyer’s deposit.
For both parties
- Read the entire purchase agreement and any addenda before you sign. Many key rules about deposit refunds live in contingency and release sections.
- If a dispute arises, consider mediation or seek guidance from a Greenville real estate attorney or your closing attorney.
Local Greenville notes
In Greenville and across much of South Carolina, closing attorneys often act as the escrow agent for earnest money. That can simplify wiring, documentation, and release procedures. Typical deposit sizes vary by neighborhood and price tier, and they change with market conditions. Ask your agent for up-to-date guidance before you submit your offer.
Ready to move forward?
If you want a clear plan for your earnest money and a confident path to closing, let’s talk. With construction-informed guidance and hands-on support, we will help you set the right deposit, protect it with smart contingencies, and keep your timeline on track. Connect with Dina Estates to get started.
FAQs
Who holds earnest money in Greenville?
- The purchase contract names the escrow holder. It is often a closing attorney or title company, but it can also be the buyer’s or listing broker’s trust account.
How much earnest money is typical in Greenville?
- It varies. Many buyers put down a few thousand dollars or around 1 percent, and more in competitive situations. The amount is negotiable and should fit the property and market.
If my inspection finds issues, do I get my deposit back?
- If your contract includes an inspection contingency and you terminate within the deadline using the required notice, you are typically entitled to a refund of your earnest money.
What happens if the appraisal comes in low?
- If your contract has an appraisal contingency, you can usually renegotiate, terminate within the deadline, or bring extra cash. Proper termination under that contingency typically results in a refund of your deposit.
How long does it take to release earnest money?
- Timing depends on your contract and whether both parties agree in writing. At closing, the credit shows on your statement. If there is a dispute, release can take longer and may require mediation or a court decision.
Will my earnest money earn interest?
- Often it does not, unless your contract and escrow account specify an interest-bearing setup. Ask the escrow holder how the account is handled.
Will earnest money appear on my closing statement?
- Yes. Your deposit shows as a credit toward your cash due at closing.
