TL;DR — the short version
Earnest money is a good-faith deposit, not an extra fee. You put it down after your offer is accepted, and at closing it’s credited toward your down payment or closing costs.
There’s no required amount in Kansas. It’s negotiated in your contract. Around 1% of the price is a common reference point, and many Johnson County deals use a flat amount instead.
It’s usually held by a title company. In Johnson County it’s typically paid to the title company named in the contract within a few days of acceptance. If a broker holds it, Kansas law requires a separate trust account.
You protect it with contingencies and deadlines. If you cancel inside the inspection, appraisal or financing terms of your contract, your deposit is generally returned. Miss a deadline or walk away without a contractual reason, and the seller may be entitled to keep it.
Never wire it based on an email alone. Call the title company at a number you already trust before sending money.
Your offer just got accepted on a home in Lenexa, Overland Park or Shawnee. Congratulations! Within a day or two, you’ll be asked for earnest money, often the first real money that leaves your account. It’s natural to wonder how much it should be, where it goes and whether you could lose it.
This guide answers those questions in plain language, based on Kansas law and how deals usually work in Johnson County. If you’re still mapping out the total cash you’ll need, read Closing Costs in Kansas: What First-Time Buyers in Johnson County Actually Pay alongside this one.
1. What Is Earnest Money?
Earnest money is a deposit that shows the seller you’re serious. Once the seller accepts your offer, they usually stop showing the home to other buyers, so the deposit gives them some assurance that you’ll follow through.
It isn’t an extra cost on top of the purchase. At closing, the full amount is credited to you and goes toward your down payment or closing costs.
What to do: Keep the earnest money in your closing-cash budget, not as a separate expense. It reduces what you bring to the closing table later.
2. How Much Earnest Money Is Typical in Johnson County?
Kansas doesn’t set a minimum or maximum. The amount is whatever you and the seller agree to in the contract.
Common reference points
About 1% of the price has long been a common starting point. On a $350,000 home, that’s $3,500.
A flat amount is also common. A Johnson County title professional told the Johnson County Post that $1,000 or more is typical in their experience, and that buyers have been offering less than 1% more often.
New construction can work differently. Builders sometimes ask for larger or nonrefundable deposits, so read the builder’s contract carefully.
When to offer more
A bigger deposit can make your offer stand out when there are multiple offers. The trade-off is that you have more at risk if you miss a deadline.
What to do: Choose an amount you could afford to lose if something went truly wrong, then rely on your contingencies so it never comes to that.
3. Who Holds the Money (and When You Pay It)?
Usually a title company
In Johnson County, buyers typically pay earnest money to the title company named in the contract, which holds it in an escrow account until closing. According to the Johnson County Post, payment is usually due within about three days of acceptance. Your contract sets the actual deadline.
If a broker holds it
Kansas law requires a real estate broker who holds earnest money to keep it in a separate trust account. After an offer is accepted, the broker may release it only with written authorization from both buyer and seller, by court order, or when the transaction closes (K.S.A. 58-3061). Brokers also can’t mix trust money with their own funds.
What to do: As soon as your offer is accepted, ask who holds the deposit, which payment methods they accept and the exact due date. A personal check can take days to clear.
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4. When You Get It Back, and When You Can Lose It
Your contract decides this, not a general rule. Most buyer protections come from contingencies: conditions that let you cancel if something specific happens.
Situation | What usually happens to your deposit |
|---|---|
You close on the home | Credited toward your down payment or closing costs |
You cancel within your inspection period, following the contract | Generally returned to you |
Your loan or appraisal falls through and your contract covers it | Generally returned to you |
The seller backs out or can’t deliver clear title | Generally returned to you |
You miss a contract deadline or walk away without a contractual reason | The seller may be entitled to keep it |
Deadlines matter most
The most common way buyers put their deposit at risk is by letting a deadline pass, such as the end of the inspection period, without giving written notice. A contingency only protects you if you use it on time and in the way the contract requires.
What to do: Put every contract deadline on your calendar the day your offer is accepted, and ask your agent to confirm in writing when each one has been met.
5. Your Lender Will Ask About It
If you’re getting a mortgage, your lender will want to verify where the earnest money came from. Fannie Mae, for example, requires lenders to verify that the deposit came from an acceptable source when it counts toward your contribution (Fannie Mae Selling Guide). In practice, that usually means bank statements and a copy of the check or wire receipt.
Avoid unexplained cash deposits right before you pay, and if family is helping, ask your lender how to document the gift first. For loan basics, see FHA vs. Conventional Loans.
What to do: Pay your earnest money from the same account you showed your lender, and save the receipt.
6. Protect Yourself From Wire Fraud
Scammers target homebuyers with fake emails that look like they come from a title company or agent and contain new wiring instructions. The CFPB and the National Association of REALTORS® both recommend confirming wiring instructions by phone using a number you got independently, not one from the email.
Treat any last-minute change to wiring instructions as a red flag.
Call to confirm the title company received your funds the same day.
If you think you sent money to the wrong place, call your bank right away and report it at IC3.gov.
What to do: Save the title company’s phone number from its official website before your offer is even accepted.
Frequently Asked Questions
How much earnest money is required in Kansas?
Kansas doesn’t require a specific amount. It’s negotiated in your contract. About 1% of the price is a common reference point, and many Johnson County deals use a flat amount of $1,000 or more.
Who holds earnest money in Johnson County?
Usually the title company named in your contract holds it in escrow until closing. If a broker holds it, Kansas law requires a separate trust account.
Do I get my earnest money back at closing?
Yes, in effect. It’s credited toward your down payment or closing costs, so it reduces the cash you bring to closing.
Can I lose my earnest money in Kansas?
You can if you back out without a reason your contract allows or miss a contract deadline. If you cancel within your contingencies and follow the contract’s notice rules, it’s generally returned.
When is earnest money due after an offer is accepted?
Your contract sets the deadline. In Johnson County it’s commonly due within a few days of acceptance.
Related Resources
The Johnson County First-Time Buyer Checklist — free step-by-step guide
Closing Costs in Kansas: What First-Time Buyers in Johnson County Actually Pay
This article is general information, not legal or financial advice. Contract terms vary, so read your purchase agreement carefully and talk with your agent, lender or a Kansas real estate attorney about your situation.
Free guide
The Johnson County First-Time Buyer Checklist
Get the step-by-step checklist, payment worksheet and inspection list I give my own first-time buyers.