Is putting money down with your offer in West Hartford making you a little nervous? You’re not alone. When you hear “earnest money,” it can feel like you’re risking cash before you even get the keys. The good news is that with the right plan, you can use your deposit to strengthen your offer while keeping your money protected. In this guide, you’ll learn how earnest money works in Connecticut closings, what’s typical in West Hartford, when funds are refundable, and smart steps to avoid costly mistakes. Let’s dive in.
Earnest money in Connecticut
Earnest money is a good-faith deposit you put down when you sign a purchase agreement. It shows the seller you intend to buy and, if you close, it is credited toward your down payment and closing costs. It is not a separate fee.
In Connecticut, your rights and obligations around the deposit come from the purchase and sale agreement. Because Connecticut uses attorney-prepared or attorney-reviewed contracts and attorney-led settlements, the agreement will spell out the deposit amount, when it is due, who holds it, and what happens if either party defaults.
Typical deposit amounts in West Hartford
Deposit amounts are negotiable, but local practice in Hartford County offers helpful ranges.
Entry-level homes
For lower-priced homes, commonly under about $250,000, deposits often fall between $1,000 and $2,500. This range shows serious intent without overexposing you if something goes wrong.
Mid-priced homes
For roughly $250,000 to $600,000, deposits are often in the $2,000 to $6,000 range, which can be roughly 0.5% to 1.5% of the price. In a typical West Hartford purchase, $2,000 to $5,000 is common.
Higher-priced and competitive offers
For higher-priced homes, buyers often offer 1% or more as a deposit, or a negotiated flat amount. In multiple-offer situations, some buyers raise deposits to 2% to 5% to stand out. A larger deposit can signal strength, but it also increases risk if you later default without a contractual right to cancel. Always weigh the tradeoffs with your attorney before increasing the amount.
What drives your number
- Market conditions and competition.
- Your financing strength and comfort with risk.
- Seller preferences and property type.
- Whether you plan to keep or waive contingencies.
How deposits are handled in CT closings
Who holds your funds
In Connecticut, deposits are typically placed in a trust or escrow account held by an attorney. Most often, that is the seller’s attorney. In some cases, the buyer’s attorney or a title or escrow company will hold the funds. The contract should identify the escrow holder by name and include account instructions.
Delivery and timing
Many contracts require delivery upon signing or within a short window, commonly 3 to 5 business days. Methods include certified or bank check and wire transfer. For larger deposits, wire is common. Because wire scams exist, verify wiring instructions directly by calling the escrow attorney or closing agent using a trusted phone number, not just an email. Get written confirmation when funds are received.
Accounting and credit at closing
The escrow holder must follow strict trust account rules and provide a receipt. If you close, the deposit is credited toward your down payment and closing costs. If the deal does not close, the contract controls when and how the funds are released.
When your deposit is refundable
Your deposit is typically refundable if you use a contract contingency properly and on time. Common examples include:
- Inspection contingency if you cancel as allowed by the contract after inspections.
- Mortgage or financing contingency if you cannot obtain financing within the contract period.
- Appraisal contingency if the appraisal is below the contract price and parties cannot reach an agreement.
- Title contingency if a title issue cannot be cured within the agreed period.
To preserve your rights, you must follow the contract instructions for written notices and deadlines. Missing a deadline can put your deposit at risk.
When you could lose it
Default and liquidated damages
If you fail to close without a permitted contractual reason, the seller may seek to keep your deposit as liquidated damages if the contract has that clause and it is enforceable. The seller may also consider other remedies. The deposit amount and contract language matter.
Waived contingencies and higher exposure
If you waive contingencies, such as inspection or financing, and later cannot close, you increase the risk of losing your deposit. Discuss these decisions with your attorney before you remove protections.
Disputes and how they resolve
If there is a dispute over the deposit, the escrow holder often keeps the funds until the parties reach a written agreement or a court issues an order. Many disagreements resolve through attorney-to-attorney negotiation. Mediation, arbitration, or litigation may apply if required by the contract.
Protect your deposit: a simple checklist
- Hire a Connecticut real estate attorney early to review your contract and timelines.
- Confirm the escrow holder in the contract, including delivery method and deadline.
- Verify wiring instructions by phone using a known, trusted number.
- Get and save a written receipt when you deliver funds.
- Calendar all deadlines for inspection, mortgage, appraisal, and title.
- Send required notices in writing, as the contract instructs, before deadlines.
- If an issue arises, ask your attorney to request extensions or written agreements before timelines expire.
Strategy: how much to offer
Start with local norms for your price range. For typical West Hartford purchases in the mid-market, $2,000 to $5,000 often fits. If you need to strengthen your offer in a competitive setting, consider whether a higher deposit is the right move for you after discussing risk with your attorney.
You can also make your offer more compelling in other ways without overexposing your deposit. Options may include a strong pre-approval letter, a clear and reasonable inspection timeline, or clean contract terms. Remember, every term is a lever. You, your attorney, and your agent can balance price, deposit, and contingencies to match the property and market.
Timelines and notices: small steps that matter
Your contract is a set of promises with dates attached. Mark the delivery date for your deposit, the end of your inspection period, the financing commitment date, and other milestones. Then meet them. If financing looks tight or an inspection reveals problems, alert your attorney immediately. Many issues can be solved with a written extension or repair agreement, but timing is critical.
Sending the wire safely
Wire transfers are common for larger deposits, but you should take a few extra steps to protect your funds.
- Call the escrow attorney or closing agent using a verified phone number to confirm instructions before sending any wire.
- Do not rely solely on emailed wiring details.
- After sending, confirm receipt in writing the same day if possible.
- If wiring instructions change midstream, treat that as a red flag and re-verify by phone.
Local context in West Hartford
West Hartford is a sought-after Hartford County suburb with steady buyer interest. In competitive moments, some buyers increase deposit amounts to strengthen offers. That approach can be effective when paired with careful contract protections and attorney guidance. Your best move is to align the deposit with your risk comfort, your financing, and the current offer landscape on that specific home.
Work with a local team you trust
Buying in West Hartford should feel confident, not confusing. With attorney-led closings and clear local norms, you can structure a smart deposit and keep your goals front and center. If you want help fine-tuning your offer strategy, the Danais & Gordon Team provides full-service buyer representation and local insight across Hartford County. We’ll help you shape a clean, compelling offer and protect your deposit through each step.
FAQs
What is earnest money in a West Hartford home purchase?
- It is a good-faith deposit you pay when you sign a purchase agreement. In Connecticut, it is credited toward your down payment and closing costs at closing.
How much earnest money do West Hartford buyers typically put down?
- Common ranges are $1,000 to $2,500 for entry-level homes and about $2,000 to $6,000 for mid-priced homes, with higher-priced homes often at 1% or more.
Who holds my deposit in Connecticut closings?
- Typically an attorney’s trust or escrow account holds the funds, most often the seller’s attorney, though sometimes the buyer’s attorney or a title or escrow company.
When is earnest money refundable in Connecticut?
- It is usually refundable if you exercise a contract contingency on time and in writing, such as inspection, financing, appraisal, or title, as your contract permits.
What could cause me to lose my deposit?
- If you default without a contractual right to cancel, the seller may seek to keep the deposit as liquidated damages if allowed under the contract.
How do I avoid wire fraud when sending my deposit?
- Verify wiring instructions by calling the escrow holder using a trusted number, avoid relying only on email, and confirm written receipt after sending.
What happens if there is a dispute over the deposit?
- The escrow holder often keeps funds until attorneys reach a written agreement or a court orders release; some contracts call for mediation or arbitration.
