Earnest Money in Georgia: How Much, Who Holds It, and When You Get It Back
When you make an offer on a metro Atlanta home, you put down earnest money — a deposit that signals you are serious. But buyers often misunderstand where it goes and when they can get it back. Here is the straight version.
What earnest money is
Earnest money is a good-faith deposit that accompanies your offer. It is not an extra fee — it gets credited toward your down payment and closing costs at closing. Its real job is to show the seller you are committed enough to put money on the line.
How much is typical
There is no legally required amount in Georgia; it is negotiated. In competitive metro Atlanta situations, a stronger earnest-money figure can make your offer stand out. Your broker can advise what is customary for your price range and how to use it strategically without overexposing yourself.
Who holds it
Earnest money is held in an escrow/trust account — usually by the listing brokerage, a title company, or the closing attorney, exactly as stated in your contract. It does not go to the seller’s pocket; it sits in escrow until closing or until the contract resolves.
When you get it back
If you terminate properly within the due diligence period (or another contingency the contract gives you), the earnest money is typically returned to you. If you walk for a reason the contract does not protect — or after your contingencies expire — you may forfeit it. The contract terms control, which is why the dates and contingencies matter so much.
Earnest money is not money you spend — it is money you stage. Held in escrow, credited at closing, and refundable if you exit the right way at the right time.
— Jose Mendoza, Managing Broker
Frequently asked questions
Is earnest money the same as a down payment?
No, but it is credited toward your down payment and closing costs at closing, so it is not an additional cost — it is part of the cash you were already bringing.
Can the seller just keep my earnest money?
Only under the conditions the contract allows. If you terminate within your protected windows and follow the procedures, it is generally returned.
Where exactly does my deposit sit?
In an escrow/trust account held by whichever party the contract names — brokerage, title company, or closing attorney. It is never simply handed to the seller up front.
