Quick Answer: Earnest money in Utah is typically 1% to 3% of the purchase price ($4,000-$12,000 on a $400,000 home). It's deposited within 4 business days of the seller accepting your offer and held by the title company in escrow. Earnest money is applied toward your down payment and closing costs at closing. You can get your earnest money back if you cancel during the due diligence period (typically 14 days) or if a financing or appraisal contingency isn't met.
Utah Earnest Money Basics
| Question | Answer |
|---|---|
| How much? | 1-3% of purchase price ($4,000-$12,000 on a $400K home) |
| When is it due? | Within 4 business days of accepted offer (Utah REPC standard) |
| Who holds it? | Title company (escrow) |
| What happens at closing? | Applied to your down payment and closing costs |
| Can I get it back? | Yes — during due diligence period or if contingencies aren't met |
When Do You Lose Earnest Money in Utah?
You risk losing earnest money if:
- You cancel after the due diligence period expires without a valid contingency
- You simply change your mind after the due diligence deadline
- You fail to perform (don't show up to closing, can't qualify for financing after waiving the financing contingency)
You do NOT lose earnest money if:
- You cancel during the due diligence period (for any reason)
- Your financing falls through and the financing contingency is still in place
- The appraisal comes in low and you have an appraisal contingency
- The seller can't deliver clear title
Tips for Earnest Money in Utah's Market
- Higher earnest money shows the seller you're serious — in competitive situations, $8,000-$15,000 can strengthen your offer
- Use cashier's check or wire transfer — personal checks are accepted but take longer to clear
- Know your deadlines: The due diligence deadline and financing deadline are the two most important dates in Utah's REPC
- Never send wire transfer instructions received by email without verbal confirmation — wire fraud is common in real estate
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Felix Vivanco
Senior Mortgage Loan Officer | NMLS #2002977
Felix has helped hundreds of Utah families find the right mortgage. Bilingual in English and Spanish. Based in Lehi, serving all of Utah.