Earnest Money by State — Timing, Custody, Forfeiture
Earnest money rules are state-specific and TC-relevant. The AI-native transaction coordinator tracks per-state earnest-money custody automatically — see /features/task-engine. This is the AI control plane for real estate compliance.
Earnest money rules vary by state across three dimensions: deposit timing, custody (broker trust account vs title vs escrow), and forfeiture conditions. We've assembled the 50-state reference. Use it to build per-state TC checklists or to brief a new agent moving into a new state.
How earnest money differs by state
Timing. Texas's TREC contract demands 3 business days from execution; California typically requires 3 business days as well; Florida's FAR/BAR allows 3 business days; New York attorney-driven custom varies. Some states allow 'upon acceptance.'
Custody. Some states require the broker's trust account (CA, FL). Some allow title or escrow (TX). Some require attorney escrow (NJ, NY).
Forfeiture. Conditions for forfeiture (breach by buyer, contingency failure) and disbursement procedures vary materially.
State-by-state quick reference
We provide a 50-state quick reference with timing, custody type, governing form, and any quirks. The full table is below. Reach out for the PDF version.
Why this matters for TCs
Earnest-money mishandling is one of the top three causes of brokerage trust-account audit findings. Getting it right per state is a compliance moat for the brokerage.
Built-in to ReBillion
The AI-native transaction coordinator extracts the earnest-money clause from the contract, runs the per-state rules engine, generates the deposit-confirmation task, and pings the right counterparty if the deposit is late. End-to-end execution; not just a lookup.
Frequently asked
Is the 50-state data current?
Updated quarterly. Material law changes get an ad-hoc update.
Where does the data come from?
State licensing authorities, REALTOR association forms, and counsel review.
Is this legal advice?
No. It's a TC reference. Consult counsel for legal advice.
Does the tool flag attorney states?
Yes. NJ, NY, MA, CT, SC, GA, DC flagged.
Can I export the table?
Yes. CSV and PDF.
Does ReBillion enforce these rules in product?
Yes. The Task Engine and audit trail run per-state custody and timing rules automatically.
See the AI control plane on your real files.
30-minute live demo with the founders. No sandbox; we run on your contracts.