Earnest Money In Utah: Buyer Basics

Are you getting ready to write an offer in Brigham City and wondering how earnest money works? You are not alone. Many first-time buyers want to be competitive without putting their deposit at risk. In this guide, you will learn what earnest money is, how much buyers in Box Elder County often put down, when it is refundable, and the key timelines to watch. Let’s dive in.

What earnest money is in Utah

Earnest money is a buyer’s deposit that shows good faith to perform under a purchase contract. If you close, it is credited toward your down payment or closing costs. Sellers view it as a sign you are serious, and it gives them a potential remedy if a buyer defaults under the contract.

In Utah, the Real Estate Purchase Contract, called the REPC, controls the amount, delivery, and handling of the deposit. You will see specific fields in the contract that outline how and when your funds must be delivered and what happens if something goes wrong.

Where the deposit is held

Under common Utah practice, the earnest money is held by a neutral escrow or title company or in a brokerage escrow account, as directed in the REPC. In Box Elder County, it is common to use a local title or escrow company named in the contract. You should receive a written receipt that confirms the amount and where it is held.

REPC items to review closely

• Amount of the earnest money and the form of payment (check, wire, or electronic transfer).
• Name and contact information for the escrow or title company.
• Deadline for delivery, stated as a specific number of days after acceptance.
• Contingencies and timelines, including inspection, appraisal, financing, and title.
• Dispute resolution and how funds are released if the contract is canceled.

How much to offer in Brigham City

There is no single right number, because your deposit depends on price point and market competition. Typical ranges in Utah and nationally are about 0.5% to 3% of the purchase price in normal conditions. In more competitive situations, buyers may offer 2% to 5% or more to help their offer stand out.

In northern Utah, including Brigham City and greater Box Elder County, median home prices are often lower than along the Salt Lake County corridor. That can mean smaller dollar amounts, even when the percentage is similar. In quieter conditions, first-time buyers sometimes offer several hundred to a few thousand dollars, paired with clear contingencies.

If a property is new construction, highly updated, or there is very low inventory, you may see larger deposits used to strengthen an offer. Keep your goals and risk tolerance in mind as you decide.

Ways to strengthen your offer without overexposing your deposit

• Provide a strong preapproval and proof of funds for the earnest money.
• Consider shorter, but realistic, inspection and financing timelines.
• Use clear terms and complete contract fields to reduce seller uncertainty.
• If needed, discuss an escalation clause or other strategy that does not require a much larger deposit.

When your earnest money is refundable

Your ability to get your deposit back depends on contingencies and deadlines in the REPC. Refunds are typically available if you terminate within the allowed timeframe and follow notice rules. Common buyer protections include:

• Inspection contingency. If you terminate within the inspection period and send proper notice, your deposit is usually refundable.
• Financing contingency. If loan approval is not obtained by the financing deadline and you terminate as allowed, you can often recover your funds.
• Appraisal contingency. If the appraisal comes in below the price and you terminate within the appraisal window, the deposit can be returned.
• Title and HOA document review. If documents reveal issues and you act within the stated period, you may cancel and receive a refund.

Always confirm the exact notice method and deadline language in your contract. Missing a date can change a refundable situation into a risk.

When your earnest money is at risk

Your deposit can be at risk if you do not follow the contract or if you default after removing protections. Common examples include:

• Failing to send an inspection objection or termination within the inspection period.
• Missing the financing or appraisal deadline without requesting and receiving a written extension.
• Backing out for reasons not covered by a contingency after deadlines pass.
• Agreeing to a non‑refundable deposit clause in a specialized situation, such as certain investor or new construction deals.

If there is a dispute, the escrow holder usually needs a written mutual release or a legal directive before releasing funds.

Typical Utah timelines to watch

These ranges are common in practice. Your REPC sets the specific timelines that control your rights.

• Offer accepted. This is your contract start date.
• Earnest money delivery. Often due within 1 to 5 business days after acceptance.
• Inspection period. Commonly 5 to 15 days from acceptance. You must send your objection or termination within this window.
• Appraisal and financing windows. Appraisal timing is tied to your loan process. A financing or loan commitment deadline is often 21 to 30 days, or as negotiated.
• Closing date. Set in the contract. At closing, the earnest money is credited to your down payment or closing costs.

Track whether the REPC uses calendar days or business days for each item. That detail matters.

How refunds and disputes are handled

If you validly terminate under a contingency, the escrow holder follows the written instructions and returns the funds to you. If the seller claims you breached, the escrow holder may require a mutual release or a legal directive before distributing funds. Many contracts include mediation, arbitration, or other dispute resolution steps.

To protect your rights, send notices exactly as the contract requires and keep proof of delivery. If a dispute arises over a significant amount, consider speaking with your agent and a local attorney.

Step-by-step checklist for Brigham City buyers

Before you write an offer

• Get mortgage preapproval and confirm you have the cash on hand for the deposit.
• Discuss a realistic earnest money amount with your agent based on current local competition and your comfort level.
• Review the REPC sections that cover deposit delivery, contingencies, and deadlines.

When you make the offer

• Fill in the exact deposit amount, payment method, and escrow holder details.
• Set clear inspection, financing, and appraisal deadlines that you can meet.
• Ask for a receipt as soon as escrow receives the funds.

After acceptance

• Calendar every deadline and set reminders several days ahead.
• Complete your inspection and lender tasks promptly to avoid delays.
• If you need more time, request an extension in writing and get the seller’s signed agreement.

If something goes wrong

• If you plan to terminate, send notice before the deadline and keep proof of delivery.
• Do not assume funds will be released automatically. Follow up with the escrow holder and agents to confirm.
• If the seller makes a claim to your deposit, gather documents and consult your agent. Consider legal counsel if needed.

Simple bilingual-ready definitions

• Earnest money = depósito de garantía / señal: dinero que muestra que el comprador va en serio.
• Escrow agent = agente de depósito en garantía: la empresa que guarda el dinero hasta el cierre o la resolución.
• Contingency = condición: un requisito que permite cancelar y recuperar el depósito si no se cumple.

Common mistakes to avoid

• Sending the deposit late or to the wrong place. Confirm delivery instructions and timing.
• Skimming deadlines. Put every date in your calendar and set alerts.
• Waiving protections without a plan. Short timelines can strengthen an offer, but make sure you can meet them.
• Assuming a verbal agreement is enough. Use written notices and signed addenda for extensions or changes.

Bottom line for Brigham City buyers

Your earnest money is a tool to show commitment and build a strong offer. In Box Elder County’s generally value-focused market, you can right-size your deposit and pair it with clear timelines and solid financing. When you follow the REPC and meet your deadlines, you protect your deposit while staying competitive.

If you want help tailoring your offer to a specific Brigham City home, reach out. You will get clear guidance on deposit strategy, timelines, and negotiation steps that match local conditions. Connect with Estela Lewis for bilingual, client-first support from offer to closing.

FAQs

What is earnest money in a Utah home purchase?

• It is a buyer’s good-faith deposit held in escrow and credited to your down payment or closing costs at closing.

Who holds earnest money in Brigham City deals?

• A neutral escrow or title company or a brokerage escrow account named in the REPC, with a written receipt confirming funds.

When can I get my earnest money back?

• If you cancel within a valid contingency window, such as inspection, financing, appraisal, or title review, and send notice on time.

When is my deposit at risk of being forfeited?

• If you miss deadlines, fail to deliver notices correctly, or default after removing protections, the seller may claim the funds.

How fast do I need to deliver the deposit in Utah?

• The REPC sets the deadline, commonly within 1 to 5 business days after acceptance, but your contract controls.

What happens if the appraisal comes in low?

• If you have an appraisal contingency, you can renegotiate, bring extra cash, or cancel within the allowed timeline for a refund.

How is a refund processed if I terminate?

• The escrow holder follows written instructions based on the contract termination. If there is a dispute, they may require a mutual release or legal order.