In Texas real estate transactions, earnest money is typically deposited before the due diligence fee. Earnest money is a form of security deposit, while option money is more like a fee for a "get out of jail free" card.Failure to release earnest money when contractually to do so obligated to can result in serious consequences to a Buyer or Seller of Real Estate. 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 answer is yes, but with some caveats. Most contracts include a due diligence deadline anywhere from seven days to two weeks after the agreement date. Earnest money is a portion of the purchase price of a home that the buyer pays upfront after signing the purchase contract.