The earnest money deposit is the deposit of good faith from the buyer to the seller. When making an offer, a deposit is required immediatly after the contract is executed (fully signed by seller and buyer). In many cases 3-5% is sufficient and sometimes banks require 10%, In a traditional sale the deposit will be written on the contract and should be received by the title company no later than 3 days after execution. Banks may require the deposit sooner or with the offer. The EMD money is wired directly to the title company handling the transaction, this is where it is held as a credit to the buyer if the purchase completes.
If there are fees associated with your bank on the wire transfer, be sure to clarify those fees and include them so the fees aren't reduced from the wire.
If the contract is a FAR BAR, As-Is contract... the deposit is refundable within the inspection period. The number of inspection days can vary, the average is 10-15 days. This is time where you hold a home inspection and determine if you're moving forward with the contract. If you decide not to move forward, you're entitled to a refund of deposit. If you retract your offer, your Realtor must advise the listing agent and provide a cancel/release of deposit prior to the expiration of the contract.
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