Earnest money is a deposit a buyer delivers — typically to the title company or escrow holder — shortly after a contract is signed, demonstrating commitment and giving the seller a defined remedy if the buyer defaults outside the contract's contingencies. The amount is negotiated (small sums on wholesale contracts, larger percentages on conventional purchases), as is everything that decides its fate: the inspection period, financing and other contingencies, and the deadlines after which the deposit is at risk. It is not a fee — in a closing that completes, earnest money is credited toward the buyer's costs.
General information, not legal advice. Statutes and timelines vary by state and change — verify against current law or a local attorney before acting.
The wholesaling rules for your state on one page — plain English, statute-checked.