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Who holds earnest money? Earnest money is typically held by a third party in an escrow account. The money remains in the account while both parties complete the terms of the contract. At closing, the funds are returned to the buyer and are often applied to the down payment or closing costs.

In most cases, earnest money is delivered when the sales contract or purchase agreement is signed, but it can also be attached to the offer. Once deposited, the funds are typically held in an escrow account until closing, at which time the deposit is applied to the buyer's down payment and closing costs.

An offer is accepted by the seller and a contract is signed. Concurrently, a deposit, also known as earnest money, is paid to an attorney or broker (never to the seller directly).

For example, realtors generally take care of holding earnest money for the home in an escrow account before a sale goes through. In for sale by owner, escrow money may be held by title companies or a real estate lawyer.

The earnest money typically goes towards the buyer's down payment or closing costs. It is refunded to the buyer only upon certain contingencies specified in the contract. If the buyer cancels the contract outside of the contingencies, it is released to the seller.

No additional steps need to be taken. The Delaware Real Estate Commission will mail an updated license. Submit the name change for approval to the Delaware Associate of REALTORS®. Confirm your name has been changed on Delaware's verify license online website and submit the Request Duplicate License form online.