Short answer: Earnest money is the deposit a buyer puts down when an offer is accepted, and in all three states it's held in a regulated escrow (trust) account, usually the broker's, not handed to the seller. Pennsylvania requires the broker to deposit it by the end of the next business day after receiving it. Delaware requires deposit within 72 hours of everyone signing, excluding weekends and federal holidays. Maryland allows up to 7 business days after both parties accept. You get it back (or it's credited toward your purchase) according to the agreement of sale. If buyer and seller disagree, the money stays in escrow until they agree in writing or a court decides, and Maryland adds a 30-day notice-and-protest process.
I'm Brian Foraker, owner of Foraker Realty Co. We write offers in Pennsylvania, Delaware and Maryland, and the deposit is one of the first things a nervous buyer asks about. The good news is that it's some of the most tightly regulated money in the whole transaction. Last reviewed October 13, 2026. General information, not legal advice; your agreement of sale controls, and a real estate attorney can advise on a specific dispute.
How much earnest money is typical?
No law in Pennsylvania, Delaware or Maryland sets an amount. The deposit is negotiated and written into the agreement of sale, and it signals how serious your offer is. I won't quote a "typical percentage," because what's competitive depends on the house, the price and how many other offers are on the table. Your agent should give you a recommendation for the specific house, and you should never put down money you can't afford to have tied up until closing.
Who holds the deposit?
- Pennsylvania: a broker must put money belonging to someone else into an escrow account at a federally or state-insured bank or depository, with the broker as trustee, used only for escrow money (49 Pa. Code §§ 35.321 and 35.325, issued under the Real Estate Licensing and Registration Act, including 63 P.S. § 455.604).
- Delaware: every broker must keep an escrow account at a federally insured bank with offices in Delaware, in the brokerage's name and used only for client money (24 Del. C. § 2923). Commission rules also bar agents from accepting a photocopy of a check or a postdated check as a deposit.
- Maryland: the broker keeps a separate trust account used solely for trust money, unless the broker receives written directions to the contrary as the law allows (Bus. Occ. & Prof. § 17-502).
Your agreement of sale names who holds the deposit, so read that line before you sign.
How fast does it have to be deposited?
- Pennsylvania: by the end of the next business day after the broker receives it. If a check comes in with an offer, the broker can hold it uncashed until the seller accepts, but only with written permission from both buyer and seller, and then must deposit it within 1 business day of acceptance (§ 35.324).
- Delaware: within 72 hours of the written agreement being signed by all parties, excluding weekends and federal holidays, or by the dates the agreement sets.
- Maryland: promptly, but not more than 7 business days after both parties accept the contract.
When do I get my earnest money back?
When the deal closes, the deposit is credited toward what you owe at settlement. If the deal falls apart, the agreement of sale decides where it goes. Most buyer protections live in the contingencies, such as the home inspection, mortgage approval or appraisal. If you end the contract properly under one of them, on time and in writing, the agreement usually provides for the deposit's return. If you simply walk away without a contractual reason, the seller may have a claim to it.
Delaware's statute puts it plainly: money held by a broker is paid out according to the terms of the transaction, unless the parties agree otherwise in writing or a court orders otherwise. Maryland lists four ways a broker may release it: the deal closes or terminates, both parties give written instructions, a court orders it after the broker files an interpleader, or the broker uses the notice process below.
What happens if buyer and seller both want the deposit?
- Pennsylvania: the broker must keep the money in escrow until the dispute is resolved. If a resolution looks unlikely without legal action, the broker may, after 30 days' notice to the parties, ask the county court to decide (an interpleader) (§ 35.327).
- Delaware: the money stays in escrow until the parties agree in writing or a court orders a distribution.
- Maryland: if a party doesn't complete the deal, the broker may send both parties a written notice of who will receive the money, by hand delivery or by certified and regular mail. Either party can stop that distribution by sending a written protest within 30 days. If nobody protests, the broker distributes as the notice said; if someone does, the money waits for a written agreement or a court order (§ 17-505).
Does the deposit earn interest?
Sometimes. Pennsylvania encourages brokers to use an interest-bearing account for money held more than 6 months, with interest following the deposit unless the parties agree otherwise. Delaware's rules say interest belongs to the owners of the funds unless the agreement says otherwise.
How do I protect my deposit?
Know every contingency deadline in your agreement, put every request and termination in writing, and don't let a date slide by. That's why our own transaction system runs the 30 steps of every deal, from ratification to settlement, so inspection deadlines and mortgage contingencies don't get dropped. If you're getting ready to make an offer, start on our buying page, read about when buyers need a written agreement, or call us at (484) 406-3004.
Sources
- Pennsylvania Code, 49 Pa. Code § 35.321, § 35.324, § 35.325 and § 35.327
- Delaware Code, Title 24, Chapter 29, Subchapter I (§ 2923), and 24 Del. Admin. Code § 2900-6.0
- Maryland Code, Business Occupations & Professions § 17-502 and § 17-505