You'll have to submit your earnest money deposit to escrow within 3 business days. An earnest money deposit in California is a good-faith gesture that shows the buyer's serious interest in purchasing a property.If the contract was contingent on loan approval, then your earnest money should be returned. The fee is meant to incentivize the seller to complete the due diligence process and provide evidence that the buyer is serious about buying the property. Earnest money is a deposit made to a seller, often in real estate transactions, that shows the buyer's good faith in a transaction. The EMD may be written as a percentage or an absolute dollar amount. Learn how the good-faith deposit works, how to include it in an offer on a home and what happens to earnest money if the deal falls through.