When Will an Earnest Money Deposit Be Returned After a Contract is Cancelled?

When Will an Earnest Money Deposit Be Returned After a Contract is Cancelled?

We are sorry to hear your contract was cancelled, and that the transaction did not work out.  This page will provide some information about when we can release an EMD following a cancellation.

What is needed to release an Earnest Deposit?

In order for us to send an earnest deposit to either party, we will need a signed cancellation of the contract that clearly states to whom the earnest deposit is to be paid.  If the contract was assigned to a third party, we would require a two cancellations.  First, we would need a cancellation between the assignor and end buyer.  This would allow us to release any deposit paid that is over the earnest deposit in the underlying contract.  Second, we would need a cancellation signed by the seller to release the remaining funds that comprise the earnest deposit under the underlying contract.

In addition to the above, if the earnest deposit was paid via eCheck or personal check in our office, we must wait ten days from the date the payment was received before we can release funds to ensure the funds have fully cleared and are in our account for disbursement.

How will funds be sent to you?

Once we have received a cancellation, we will send you a form to complete to elect how you would like to receive funds back.  We can send funds either via wire transfer or a check sent via priority mail.

When will funds be sent?

Once we receive the cancellation form and the complete form to select the payment method, we will send the payment out within one business day.  You should expect to receive funds by the end of that business day in your bank account if you elect wire.  If you elect a check by priority mail, you should generally expect to receive the check within 2-3 business days, but it depends on the postal service demands and the distance the check is being sent.  

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