When you make an offer on a home in the Boise area, known locally as the Treasure Valley, earnest money is the deposit that tells the seller you are serious. It is often about 1% to 3% of the purchase price, but the exact amount is negotiable and written into your offer. The deposit schedule is part of your purchase and sale agreement, so the amount, the timing, and the holder are all defined in writing before you sign.
Where the money sits while the deal is active
Your earnest money is not paid to the seller and does not sit in the seller's account. The purchase and sale agreement names the brokerage or title company that will hold the deposit in trust, and it stays there until closing, termination, or a mutual release. In Idaho, entrusted funds like earnest money must be deposited into a real estate trust account (Idaho Code section 54-2045).
What happens to earnest money, by outcome
What happens to earnest money, by outcome
| Outcome | What happens to earnest money |
|---|---|
| Deal closes normally | Credited toward your down payment or closing costs |
| Buyer exits through a valid contingency (inspection, financing, appraisal) | Refunded per the contract |
| Seller cannot deliver clear title | Refunded |
| Both parties sign a mutual release | Refunded |
| Buyer backs out with no valid contingency | Seller may keep it under the contract's liquidated damages terms |
The safety rule that matters
Never send earnest money to a personal account, to a wire address you were given by email, or to anyone other than the entity named in your contract. If anything about the payment instructions feels off, stop and confirm directly with your agent or the title company.
Sylvia's Advice
Earnest money questions are really risk questions, and the answer changes with the strength of your contract, not just your intentions. In my practice, I make sure every buyer understands the three timelines that protect them: the inspection period, the financing period, and the appraisal period, because those are the doors a buyer can walk through without penalty. I also make sure my clients never issue a deposit until they have confirmed the exact entity and account in writing. If you are about to write an offer, or you are already under contract and wondering where you stand, bring me the contract and we will read it together. Connect with Sylvia and I will help you protect your deposit from the first offer to closing.
Connect with Sylvia