Thinking about making an offer on a home in Burlington or nearby towns? Earnest money can help your offer stand out, but it also puts real dollars on the line. You want to be competitive without risking your deposit.
In this guide, you’ll learn what earnest money is, how much buyers in Chittenden County typically offer, who holds the funds, when you can get it back, and how to avoid losing it. You’ll also see a simple timeline and a checklist you can use right away. Let’s dive in.
Earnest money basics in Vermont
Earnest money is a good‑faith deposit you include with an offer. It shows the seller you intend to complete the purchase. If you close, the deposit is applied to your down payment or closing costs.
If the deal falls apart, what happens to the deposit depends on the terms in your purchase agreement. The size of the deposit and the way your contingencies are written can protect you.
How much in Burlington
Typical earnest‑money amounts are often a flat dollar amount (for example, around $1,000 to $10,000) or a percentage of the price (commonly 1 to 3 percent). In tight, competitive situations, buyers sometimes offer more.
In Burlington and greater Chittenden County, amounts vary with inventory and demand. Hot listings may attract larger deposits and shorter timelines. Softer conditions may allow for smaller deposits. Ask your local agent for current norms in your target neighborhood.
Who holds escrow funds
In Vermont, the deposit may be held by the listing broker, the buyer’s broker, a title company, or a real estate attorney. Many Vermont closings involve attorneys, and brokers often hold deposits in trust accounts until closing or release.
Licensed brokers and closing agents must keep client funds in separate trust or escrow accounts. Always ask where the funds will be deposited and get a written receipt.
Delivery timing and payment
Purchase agreements usually set a delivery window for the deposit after acceptance, often within 24 to 72 hours. The contract should name the escrow holder and the delivery method.
Common forms of payment include certified check or wire transfer. Verify instructions carefully, deliver on time, and keep copies of your bank record and the receipt.
Contingencies and refunds
Contingencies give you time to complete due diligence and can protect your deposit:
- Inspection: time to inspect the home and either request repairs, renegotiate, or cancel within the window.
- Financing: ability to cancel if you cannot secure a mortgage commitment by the stated date.
- Appraisal: options if the home does not appraise at the contract price.
- Title and survey: review title matters; unresolved issues can be a basis to cancel.
- Condo documents (if applicable): time to review association documents.
Typical windows in our area: inspections around 7 to 14 days, financing around 15 to 45 days, and closings often 30 to 60 days from acceptance. These are negotiated terms, so confirm the exact dates in your contract.
If you cancel within a valid contingency period and follow the notice rules in your agreement, your earnest money is ordinarily returned.
When you risk forfeiture
You can put your deposit at risk if you waive protections or miss deadlines. Common examples include waiving inspection or financing, then backing out later, or failing to act within a contingency period.
Many purchase agreements include a liquidated damages clause that allows the seller to keep the deposit if the buyer defaults. Whether that is the seller’s only remedy depends on your contract. If a dispute arises, talk with an attorney.
If the seller breaches the agreement, such as failing to deliver clear title, you are typically entitled to a return of your deposit and may have other remedies per the contract.
How disputes are resolved
The escrow holder follows the instructions in the purchase agreement. If both parties sign a written release, the funds are disbursed accordingly.
If the parties disagree, the escrow holder may hold the funds until there is a mutual release, an arbitration or mediation decision if your contract provides for it, or a court order. In some cases, the escrow holder may deposit the funds with the court through an interpleader action.
Keep everything in writing and maintain proof of your deposit and notices. If a dispute occurs, contact your agent and attorney promptly.
Buyer checklist
Before you write an offer
- Get a full mortgage pre‑approval.
- Discuss typical deposit amounts and timelines for the Burlington and Chittenden County neighborhoods you’re targeting.
When drafting your offer
- State the earnest‑money amount and delivery time (for example, within 48 hours of acceptance).
- Name the escrow holder and include contact information if possible.
- Set clear contingency periods and how notices must be delivered.
- Decide whether appraisal and financing contingencies are needed and what it means to waive them.
After acceptance
- Deliver your deposit on time and get a written receipt.
- Schedule inspections immediately within the inspection window.
- Work with your lender to meet financing deadlines and keep both agents updated.
If issues arise
- If you need to cancel under a contingency, provide written notice immediately as your contract requires and request written confirmation of the refund.
- If a dispute emerges, consult an attorney and ask the escrow holder for written status of the funds.
Documentation to keep
- Signed purchase agreement and all addenda.
- Proof of deposit, escrow receipt, inspection reports, lender communications.
- Copies of all notices and email or text threads for key milestones.
Example timeline
- Day 0: Offer accepted. Deliver earnest money within 24 to 72 hours.
- Days 0–7 to 14: Inspection and due diligence. Request repairs, renegotiate, or cancel within the window.
- Days 0–21 to 45: Financing and appraisal process. Obtain mortgage commitment.
- Concurrent: Title review and any survey as needed.
- Day 30 to 60: Typical closing range. Earnest money is applied to your closing funds.
Tips for first‑time buyers
- Protect key contingencies. Inspection and financing are your main safeguards unless you have strong reasons to waive them.
- Watch your dates. Put contingency deadlines on your calendar and set reminders.
- Ask where your money goes. Confirm the escrow holder, the trust account, and get a receipt.
- Bring in pros. An experienced local agent and, if you choose, a Vermont attorney can explain terms and help prevent costly mistakes.
Work with a local guide
Buying in Burlington, South Burlington, Williston, Shelburne, Colchester, or Jericho comes with local norms that affect your deposit size and your timelines. You deserve a clear plan and a responsive team that keeps your offer strong and your funds protected.
If you’re planning a purchase, let us help you structure a competitive, safe offer and manage each step from escrow to closing. Book an appointment with Pursuit Real Estate.
FAQs
How much earnest money should Burlington buyers offer?
- Common ranges are a flat amount like $1,000 to $10,000 or about 1 to 3 percent of price, adjusted for how competitive the listing is in Chittenden County.
Who usually holds earnest money in Vermont?
- The listing broker, buyer’s broker, a title company, or a real estate attorney may hold escrow funds, depending on local custom and your contract.
When do I get my deposit back after inspection?
- If you cancel within the inspection contingency period and provide notice as your contract requires, the deposit is ordinarily returned to you.
What happens if my mortgage falls through?
- If you have an active financing contingency and cannot obtain a mortgage in time, you can usually cancel and recover your deposit per the contract.
Can a seller keep my deposit if they change their mind?
- If the seller breaches the agreement, buyers are typically entitled to a refund of earnest money and may have other remedies under the contract.
How long do I have to deliver the deposit?
- Most agreements require delivery within 24 to 72 hours of acceptance. Your contract will state the exact deadline and acceptable payment method.
What if the escrow holder won’t release my funds?
- The holder may wait for a mutual release, an arbitration or mediation decision if provided by the contract, or a court order such as interpleader.
Should I use an attorney for a Vermont purchase?
- Many Vermont closings involve attorneys. If you have questions about contingencies, liquidated damages, or a dispute, consult an attorney for guidance.
