Earnest Money in Delaware County: Amounts and Refunds

Wondering how much earnest money you should put down in Delaware County and when you can get it back if things change? You are not alone. This small deposit carries real weight because it signals your commitment and sets up what happens if the deal does not close. In this guide, you will learn typical amounts for our area, how refunds work under common contingencies, and what to do if there is a dispute. Let’s dive in.

Earnest money basics in Ohio

Earnest money is a good‑faith deposit you include with a purchase offer to show you are serious. It is held in escrow under the purchase agreement and is applied to your purchase price at closing. In our area, the funds are most often held by a title or escrow company, sometimes by a brokerage trust account, and occasionally by an attorney acting as escrow agent. The holder must follow the written instructions in your contract.

There is no state rule that sets a required amount. Refundability and release depend on your contract terms, your deadlines, and whether you meet the notice requirements in those terms. If you are unsure how your agreement reads, ask your agent to walk you through the timing and notice language before you sign.

Typical amounts in Delaware County

There is no fixed percentage in Ohio, but local practice in Central Ohio often falls into these ranges:

• Entry‑level homes under about $200,000: usually $1,000 to $3,000.
• Mid‑priced homes around $200,000 to $400,000: commonly $3,000 to $7,500.
• Higher‑priced homes over $400,000: often 1 to 2 percent of the price or a flat amount such as $10,000 or more.

In a competitive sellers’ market, some buyers increase the deposit to strengthen their offer. Balance strength with risk. Bigger is not always better if you need contingency protection.

When and how to deposit

Most offers require deposit within a short window after acceptance, often 24 to 72 hours. You will typically send a wire transfer or deliver a certified check to the named escrow holder. Personal checks are sometimes accepted, but wires or certified funds are more common.

Ask for written confirmation of receipt that shows the escrow holder and account. Sellers should confirm the funds are deposited into a neutral escrow before relying on buyer performance. Clear documentation protects both sides.

Refunds and common contingencies

Your right to a refund depends on the contingencies in your purchase agreement and your timing. The most common protections include:

• Inspection contingency. If you cancel within the inspection period, or as allowed by the inspection terms, the deposit is generally refundable.
• Financing contingency. If your lender issues a bona fide denial and you deliver notice within the contract’s timeline, you usually get the deposit back.
• Appraisal contingency. If the home appraises below the contract price and the agreement lets you cancel, you can typically recover your deposit.
• Title contingency. If the seller cannot provide clear, marketable title and cannot cure within the contract period, you can cancel with a refund.

The key is deadlines and written notice. Missing an inspection or financing notice date often removes your protection, which can put your deposit at risk.

When you could lose it

Earnest money is at risk if you default without a valid contingency or miss required notices. Common examples include:

• You cancel outside the inspection window without an allowed reason under the contract.
• You refuse to close when no contingency supports cancellation.
• Your contract includes a valid liquidated damages clause that awards the deposit to the seller if you default.

Contract language controls. If there is no liquidated damages clause, the seller may pursue other remedies, including actual damages, through the contract and the courts.

If the seller defaults

If a seller refuses to close without a valid reason, your remedies often include return of the deposit, possible specific performance, or other contract remedies. Many standard forms spell out default remedies for both sides. Your agent can help you interpret the options and next steps.

How release and disputes work

Most of the time, release is straightforward. At closing, the escrow agent applies your deposit to the purchase price. If the deal is canceled, the escrow holder releases funds based on a signed mutual release or based on clear written instructions that match the contract.

If the parties disagree, the escrow holder usually will not release funds without a joint release, a court order, or as directed by the contract’s dispute clause. Typical steps include:

1. Review the purchase agreement for contingencies, notice deadlines, and default remedies.
2. Request written confirmation from the escrow holder and collect documentation like the deposit receipt and any notices.
3. Follow the contract’s dispute path, which may include mediation or arbitration.
4. If needed, a court can decide ownership of the funds. A title company may interplead funds into court for a judge to decide.
5. If the funds are held by a licensed broker and you suspect mishandling, the Ohio real estate regulator can investigate. Civil recovery is through the courts.

How long refunds take

If the cancellation is valid and paperwork is complete, escrow holders often process refunds within days to a few weeks. Timelines depend on the escrow company’s procedures and whether any third‑party approvals are required. Ask your title or escrow contact for their processing window.

Buyer checklist

Use this quick checklist to protect your deposit:

• Confirm where the funds will be held and get the escrow holder’s name and address in the contract.
• Choose an amount that strengthens your offer without exposing you to unnecessary risk.
• Keep inspection, financing, and appraisal deadlines on your calendar and send notices in writing.
• Use a wire or certified check and get a written receipt from the escrow holder.
• Keep copies of your contract, addenda, and any lender denial letters if needed.

Seller checklist

Set clear expectations to reduce disputes:

• Require deposit within a short, specific timeframe and ask for written proof of deposit.
• Ensure your contract spells out default remedies and how earnest money is handled if the buyer defaults.
• Do not release funds early without a signed mutual release that matches your understanding of the outcome.
• Consult your listing broker or an attorney before asserting a claim to the deposit as liquidated damages.

Local practice notes

In Delaware County and the broader Columbus area, title companies commonly hold earnest money and issue the receipt. Contracts typically state how and when the funds are delivered and released. While the ranges above are common, your exact amount and protection should match market conditions and your comfort with risk.

Final thoughts

Earnest money should work for you, not against you. The right amount, clear contract language, and disciplined follow‑through on deadlines go a long way toward a smooth closing and a safe outcome if you need to cancel. If you want local guidance on how to structure your deposit, set timelines, and avoid disputes, reach out to Josh Cooper and the MORE Ohio Team for a quick, practical consult.

FAQs

How much earnest money should a Delaware County buyer expect to pay?

• There is no fixed rule, but many Central Ohio deals range from a few thousand dollars for entry‑level homes to 1 to 2 percent for higher‑priced homes, based on contract terms and market conditions.

When can a Delaware County buyer get an earnest money refund after inspection?

• If your purchase agreement includes an inspection contingency and you cancel or resolve within the inspection period with proper written notice, the deposit is generally refundable.

What happens to earnest money if my mortgage is denied in Ohio?

• With a financing contingency and timely written notice that includes a bona fide lender denial, you are typically entitled to a refund under the contract.

Who holds earnest money for homes in Delaware County, Ohio?

• A title or escrow company is most common, though some deposits are held in a brokerage trust account or by an attorney acting as escrow agent, all following the contract’s instructions.

How are earnest money disputes resolved in Central Ohio contracts?

• The escrow holder follows the contract, and if parties disagree, resolution may require a signed mutual release, mediation or arbitration if required, or a court order.

How long does a valid earnest money refund take after cancellation?

• Once the escrow holder receives proper termination paperwork, refunds often process within days to a few weeks, depending on the company’s procedures.