What Is Earnest Money in Oklahoma, and Can I Lose It?

Earnest money is a deposit that shows the seller you're serious about buying their home. It isn't a fee. When your purchase closes, it's credited toward your closing costs or down payment. I generally recommend around 1% of the purchase price, and in Oklahoma it's most often due within 3 days of an accepted contract, though that can vary based on how your contract is written.

Whether you're buying in Tulsa, Broken Arrow, Jenks, Owasso, Collinsville, Coweta, Glenpool, or Catoosa, earnest money works the same way: it goes toward your purchase.

I'm Christina Shortsleeve, a REALTOR® with REMAX Results, and I help first-time buyers across the Greater Tulsa Area buy with a clear plan. Earnest money is often the first time a buyer moves real money in the process, so it's worth understanding before you write an offer.

My recommendation is around 1% of the purchase price. On a $250,000 home, that's about $2,500.

The amount is part of your offer, so it's something you and I decide together when I write it with you. My article on how to decide how much to offer walks through the rest of your offer.

In Oklahoma, earnest money is generally due within 3 days of an accepted contract, but that can vary based on how your contract is written. Once your offer is accepted, I'll send you the deposit instructions and the date it's due, so you know exactly what to do and when.

In Oklahoma, a lot of title companies hold earnest money, but brokerages can also hold it. Either way, it's held until closing, when it's credited toward your purchase.

Yes, in some situations. In most cases, a buyer can lose their earnest money by backing out after the inspection period or once repairs have been negotiated.

During the inspection period, you have options. If you and the seller don't come to an agreement on repairs, the contract usually terminates within a specified timeline, and your earnest money is returned to you.* My article on what a home inspection covers in Oklahoma explains that part of the process.

That's why the inspection period matters so much. It's your time to look closely at the home before your earnest money is at risk.

*Options may vary based upon contract terms.

At closing, your earnest money is credited toward your closing costs or down payment. It isn't an extra cost on top of your purchase. It's part of the money you were already bringing to the table, just paid earlier.

You can see how earnest money fits with your down payment and closing costs in my article on how much money you need to buy your first home.

• Thinking it's a fee. It's a deposit that goes toward your purchase at closing.
• Not planning for it. It's due soon after your offer is accepted, so it helps to have the funds ready before you write an offer.
• Backing out after the inspection period without understanding the risk. After the inspection period or once repairs have been negotiated, backing out can put your earnest money at risk.

Is earnest money a fee?

No. It's a deposit that's credited toward your closing costs or down payment at closing.

How much earnest money do buyers put down in the Greater Tulsa Area?

I recommend around 1% of the purchase price.

When is earnest money due in Oklahoma?

Usually within 3 days of an accepted contract, but it varies based on how your contract is written.

Who holds earnest money in Oklahoma?

A lot of title companies hold earnest money, but brokerages can also hold it.

Can I lose my earnest money?

A buyer can generally lose their earnest money by backing out after the inspection period or once repairs have been negotiated. Options may vary based upon contract terms.

If you're starting to think about buying, start with my page for first-time buyers in the Greater Tulsa Area. When you're ready, send me a message. I'll walk you through the Purchasing Pathway, so you know what each step looks like, including earnest money, before you reach it.

Christina Shortsleeve is a REALTOR® with REMAX Results in the Greater Tulsa Area, helping first-time buyers and downsizers buy and sell with a clear plan. She has sold 127 homes since 2020.