The short answer: earnest money is a deposit you make with your offer to show the seller you are serious. In Minnesota the amount is negotiated. Under Minnesota Statutes section 82.75, unless your written agreement says otherwise, the listing broker deposits it in a trust account within three business days after receiving it or after final acceptance of the purchase agreement, whichever is later. At closing it is usually credited toward your purchase.
Getting ready to write an offer? Book a short call and we will talk through an amount that fits your situation.
What the law calls it
Minnesota treats earnest money as trust funds: money a broker holds in a fiduciary role for someone else while a transaction is pending (Minn. Stat. 82.55). It cannot be mixed with the broker’s own money.
Who holds it and when
- The listing broker is the default holder, unless the parties agree otherwise in writing.
- Deposit timing: as the written agreement says, or, if it is silent, within three business days of receipt or final acceptance, whichever is later.
- If the seller rejects your offer, the earnest money must be returned to you no later than the next business day after the rejection.
Source: Minn. Stat. 82.75.
When it can be released
Under section 82.75, trust funds can be paid out only at closing, under a written agreement between the parties, under an affidavit as required by Minnesota’s purchase-agreement cancellation statute, or under a court order.
If the deal falls apart
Minnesota has a specific process for canceling a residential purchase agreement (Minn. Stat. 559.217), including notices and a 15-day period in many situations. Who keeps the earnest money depends on your agreement and that process. If both sides start cancellation, a court can decide who receives it. When there is a dispute, talk with a real estate attorney. I am not a lawyer, and this article is general information, not legal advice.
How much should you put down?
The amount is negotiated. A larger deposit can make an offer feel more committed, but it also puts more of your money at risk if you fail to follow the agreement. We will decide together. See why good offers get rejected for how earnest money fits into the whole package.
Quick answers
Who holds earnest money in Minnesota?
The listing broker is the default holder of earnest money in a trust account, unless the parties agree otherwise in writing (Minn. Stat. 82.75).
How fast must earnest money be deposited in Minnesota?
If the written agreement does not say, the listing broker must deposit it within three business days of receiving it or of final acceptance of the purchase agreement, whichever is later (Minn. Stat. 82.75).
How much earnest money is required in Minnesota?
No fixed amount is required. The amount is negotiated between seller and buyer.
Questions before you write? Book a call, or call or text me at 952-314-9446.
Please note: I don’t handle rentals or property management. I work with sellers and buyers, and that’s where I can help you most.
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