Earnest Money in Arizona: Chandler Buyer Basics

What happens to your earnest money after your offer is accepted? If you are buying in Chandler, it is normal to have questions about how much to put down, when it is due, and what protects your deposit. You want to make a competitive offer without risking more than you need to. In this guide, you will learn how earnest money works in Arizona, local Chandler practices, and simple steps to keep your funds safe and on track. Let’s dive in.

Earnest money, explained

Earnest money is a good faith deposit you include with an offer to show the seller you are serious. If the deal closes, your deposit is credited toward your cash to close or down payment. If the deal does not close, what happens to your deposit depends on your contract and the timing of any contingencies.

A stronger deposit can help your offer stand out, especially when inventory is tight. The size, timing, and refund rules are all negotiable in the Arizona purchase contract.

Typical Chandler amounts

There is no fixed amount set by law. In many Phoenix-area transactions, buyers offer a flat amount or a percentage of the price. Common practice is a few thousand dollars or roughly 1 to 3 percent of the purchase price. In competitive moments, you may choose to offer more. In slower markets, sellers may accept less. Use current local guidance to set a number that matches your goals and risk tolerance.

Where the money goes

Your purchase contract names who will hold your deposit. In Arizona, it is most often an escrow or title company. It can also be a licensed real estate broker’s trust account, or an attorney or trustee if used. The holder safeguards the funds and follows written instructions until closing or release.

The contract also sets the deadline for delivery. Deposits are typically due upon acceptance or within a few business days. Missing that deadline can be a breach, so plan your transfer in advance.

How to deliver your deposit

You will receive instructions from the escrow or title company or from the named holder. Common delivery methods include wire transfer, cashier’s check, personal check, or approved electronic deposit. Always request and keep a written receipt showing the amount, property address, and date. That receipt is your proof that you met the deadline.

Contingencies that protect you

Contingencies are contract clauses that give you time to investigate the home and financing while keeping your deposit protected during those windows.

• Inspection period. You can hire licensed inspectors for home, roof, HVAC, pool, and pests. If you cancel within the inspection window per the contract, your deposit is typically returned.
• Financing contingency. If you cannot secure your loan as outlined in the contract, you may have the right to cancel and receive your deposit back within the stated timeline.
• Appraisal contingency. If the home does not appraise at the agreed value and you do not waive or resolve the issue, you can often cancel within the window and keep your deposit.

Read the exact language in your contract and track every deadline. The protection ends when the window closes.

When your deposit is at risk

Your earnest money can become non-refundable if you default after contingency periods expire. Common risk points include missing the deposit due date, failing to remove contingencies on time, or backing out without a contractual reason after protected periods end. Many Arizona contracts allow the seller to keep the deposit as liquidated damages if the buyer defaults, though some allow other remedies. The exact remedies depend on your signed agreement.

If there is a dispute

The cleanest outcome is a mutual written release signed by buyer and seller that directs who receives the deposit. If one party contests the funds, the holder usually keeps the money in escrow until both sides agree, a court orders release, or the contract directs a specific process. Some disputes go to court through interpleader. Timelines and options vary, so get advice quickly if a dispute arises.

Wire fraud safety

Real estate wire fraud is a known risk. Scammers can mimic emails and send fake instructions. Use these safeguards:

• Verify all wire instructions by calling the escrow or title company at a phone number you already trust from verified paperwork or their official website. Do not rely on a phone number found in an email.
• Confirm account details with two-factor verification before sending funds.
• Avoid last-minute changes. Treat any change to wiring details as suspicious and verify in person or by phone.

Buyer checklist for Chandler

Before you write an offer:

• Ask who will hold your deposit and what timing the seller expects.
• Choose a deposit amount that fits Chandler’s market today and your risk comfort.
• Set realistic contingency windows. Shorter periods can help you compete.

At contract acceptance:

• Send your earnest money by the method in the contract and calendar the deadline.
• Get a written receipt from escrow or the holder and save it with your records.

During contingencies:

• Order inspections right away and review reports promptly.
• Track every timeline in writing. Do not miss your chance to negotiate or cancel.

If problems arise:

• If you cancel under a valid contingency, request your deposit back in writing and cite the clause.
• If the seller claims a default, connect with your agent and an Arizona real estate attorney to assess options. Consider negotiation or mediation early.

Protecting your funds:

• Confirm wire instructions by phone and use secure channels for any financial details.
• Keep copies of all escrow communications and receipts.

Offer strategy that works in Chandler

Your deposit is one lever among many. To strengthen your offer:

• Combine a solid deposit with a strong pre-approval and clear proof of funds for closing.
• Tighten, but do not rush, your inspection period if you are competing.
• If a larger non-refundable deposit is not comfortable, balance your terms with flexibility on closing date or other seller-friendly details.

The goal is a confident offer that protects your deposit while signaling commitment.

How your deposit is applied at closing

If you close, your earnest money appears as a credit on your final closing statement. It reduces the cash you need to bring to the table for your down payment and closing costs. The escrow holder disburses funds according to the contract and final instructions.

Work with a trusted local guide

You do not have to navigate these decisions alone. A seasoned local team can help you size your deposit, structure contingency timelines, avoid wire fraud, and keep your deadlines on track. If you are buying in Chandler or across the East Valley, connect with Peggy Sala for personalized guidance from a family-led team backed by Berkshire Hathaway HomeServices. Schedule your free consultation and move forward with clarity.

FAQs

What is earnest money in Arizona real estate?

• It is a good faith deposit you include with your offer that is credited to your closing if the sale goes through and handled per the contract if it does not.

How much earnest money should Chandler buyers plan for?

• Many local offers include a few thousand dollars or roughly 1 to 3 percent of price, adjusted for market conditions and your comfort level.

When is earnest money due after an offer is accepted?

• Your contract sets the deadline, often upon acceptance or within 2 to 5 business days, and missing it can be a breach.

Who holds earnest money in Chandler transactions?

• Most deposits are held by an escrow or title company named in the contract, though a broker’s trust account may also hold funds.

When is earnest money refundable to the buyer?

• If you cancel within protected contingency windows, like inspection, loan, or appraisal, your deposit is typically returned per contract terms.

What happens if buyer and seller disagree about the deposit?

• The holder usually keeps funds until both parties agree in writing, a court orders release, or the contract directs a specific resolution process.