09/23/2026
💰 FAQ: What Happens to Earnest Money When a Deal Falls Apart?
Earnest money shows a buyer’s good-faith commitment to purchasing a property—but if the transaction doesn’t close, who gets the money?
The answer often depends on why the deal ended and what the contract says. 📝 If a buyer cancels under a valid contingency, such as an inspection, financing, or attorney-review provision, the earnest money may be refundable. If a buyer breaches the contract without a protected reason, the seller may have a claim to the funds.
⚖️ Because every transaction and contract is different, understanding your rights before taking action matters.
🏡 Facing a real estate contract dispute or concerned about your earnest money? Contact JP Legal LLC to discuss your situation and legal options.
📞 (312) 496-3326
💻 jplegalillinois.com
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