How much earnest money should you put down in Tulsa, and when can you get it back if things change? If you are getting ready to tour homes, this is one of the first decisions you will make. You want your offer to stand out without risking more cash than you need to. In this guide, you will learn what earnest money is, how it works in Tulsa, how much to offer, and how to protect your deposit through every step. Let’s dive in.
What is earnest money
Earnest money is a good-faith deposit you deliver after a seller accepts your offer. It shows you intend to complete the purchase. In Tulsa, it is typically held by a title or escrow company, or sometimes a closing attorney or the seller’s broker, as named in your purchase agreement.
This money is not an extra fee. If you close, it is credited toward your down payment and closing costs. There is no Oklahoma law that requires a specific amount. The deposit amount, who holds it, and the delivery deadline are all negotiated and written into your contract.
How much to offer in Tulsa
There is no one-size number, but typical ranges in Tulsa look like this:
- Lower-priced or less competitive situations: several hundred dollars to about $1,000–$2,000.
- Mid-market Tulsa purchases: commonly $1,500–$5,000.
- Higher-priced homes or multiple-offer situations: often 1%–2% of the price or more.
Your amount should reflect price point, how competitive the property is, your financing type, and the contingencies you include. A larger deposit can strengthen your offer, but it also increases your risk if you miss deadlines or default. Balance your deposit size with the protections you need.
Who holds the money and how it is deposited
Your purchase agreement names the escrow holder and the delivery deadline. In Tulsa, a title or escrow company commonly holds the funds. Some contracts name the seller’s broker or a closing attorney.
Most contracts require you to deposit the money quickly. A common timing window is immediate to 1–3 business days after mutual acceptance. Some agreements call for a second deposit later as additional earnest money. Always follow what is written in your specific contract.
Key contract deadlines to watch
Your refund rights usually depend on meeting written deadlines and giving proper notice within your contingencies. Common timelines in Oklahoma include:
- Inspection period: often 7–10 days from acceptance to complete inspections and deliver written requests or notice to cancel. Written notice on time is essential.
- Financing approval: commonly 21–30 days. This is when you secure loan approval or exercise the financing contingency if approval is not possible.
- Appraisal: typically tied to financing. Appraisal issues are addressed within the financing period.
- Title review: often 5–10 days to review the title commitment and object if needed.
Use calendar reminders for each date. If you need more time, request extensions in writing before a deadline expires.
When earnest money is refundable
Your deposit is usually refundable when you follow the contract and terminate within your contingency periods. Common refund scenarios include:
- You cancel in writing during the inspection period due to inspection findings, within the stated timeframe.
- You are unable to obtain financing and timely terminate under the financing contingency, following all notice and lender documentation requirements your contract sets out.
- The property appraises below the contract price and you terminate per the appraisal or financing terms.
- Title defects cannot be cured within the agreed period, and you end the contract as allowed by the title clause.
- You and the seller sign a mutual release instructing the escrow holder to return the funds.
Keep all documentation, such as inspection reports, lender letters, and appraisals. The escrow holder typically needs written instructions from both parties or a dispute resolution outcome before releasing money.
When you can lose the deposit
Earnest money can be forfeited if you default under the contract. Common situations include:
- You miss a contingency deadline and try to cancel later without a valid contractual right.
- You fail to perform a non-waived duty, such as applying for financing in good faith.
- You do not close without a valid termination right, and your contract includes a liquidated damages clause that allows the seller to keep the deposit.
The contract controls what counts as a default and what remedies apply. Read that section carefully with your agent.
Smart offer strategy for Tulsa buyers
You want your offer to be strong and safe. Here is how to balance both:
- Right-size your deposit. Use the typical Tulsa ranges as a starting point, then tailor for the home’s price and competitiveness.
- Keep your protections. Inspection, financing, appraisal, and title contingencies protect your deposit. Shortening, not waiving, a contingency can improve your offer with less risk.
- Name the escrow holder and delivery timeline. Clear instructions reduce confusion and help you meet deadlines.
- Consider additional earnest money. In competitive offers, you can schedule a second deposit after the inspection period. This signals confidence once major unknowns are checked.
- Pair with strong financing. A solid pre-approval letter makes your entire package more compelling without increasing risk to your deposit.
If a problem pops up
Issues happen. Move quickly and stay within the contract:
- Act fast. As soon as an inspection, appraisal, or loan issue surfaces, check your deadline and send the required written notice.
- Keep records. Save inspection reports, lender communications, and appraisal findings.
- Loop in your team. Notify your agent and the escrow or title company right away. If a release or amendment is needed, get it in writing.
- Follow dispute procedures. If you and the seller disagree, the escrow holder will hold the funds until there is a mutual release or a resolution through the contract’s dispute process, which may include mediation, arbitration, interpleader, or court order.
Buyer action checklist
Use this quick checklist before you start touring and when you write offers:
- Confirm liquid funds for earnest money, inspections, appraisal fees, and other up-front costs.
- Get a lender pre-approval letter, not just prequalification.
- Discuss typical earnest money amounts in your target Tulsa neighborhoods and price band with your agent.
- Decide your deposit strategy, including whether to use additional earnest money after inspections.
- Enter clear contingency dates for inspection, financing, appraisal, and title in your offer.
- Set reminders for each deadline and build in time to request extensions if needed.
- Send all notices in writing as the contract requires. Verbal updates are not enough.
- Keep documentation for any issue that affects your rights.
Local forms and norms to know
Most Tulsa-area transactions use residential purchase agreement forms from the Oklahoma Association of REALTORS. These forms include fields for earnest money, escrow holder, contingency periods, and disbursement instructions. Local guidance from the Greater Tulsa Association of REALTORS and title companies helps shape common practices, such as using title companies or closing attorneys as escrow holders.
Contract language and timelines can change. Always confirm what your signed agreement says.
Final thoughts
Earnest money is a small part of your budget, but it has a big impact on offer strength and risk. When you set clear contingency dates, deliver funds on time, and communicate in writing, you protect your deposit and keep your purchase on track. If you ever feel unsure, ask questions early and often.
This guide is general information. Always review your signed contract and consult your agent or a real estate attorney for advice on your specific situation. If you would like tailored guidance for Tulsa, Jenks, Bixby, Broken Arrow, Owasso, and nearby markets, connect with Heidi Ewing for a calm, step-by-step plan that fits your goals.
FAQs
How much earnest money is typical in Tulsa right now?
- Many mid-market Tulsa purchases use about $1,500–$5,000, with lower amounts for less competitive homes and 1%–2% of price or more for higher-priced or multiple-offer situations.
Who usually holds earnest money in a Tulsa sale?
- A title or escrow company commonly holds it, or sometimes a closing attorney or the seller’s broker, as named in your purchase agreement.
How long do I have to deposit the money after acceptance?
- Many contracts require delivery immediately to within 1–3 business days, though exact timing depends on what your agreement states.
Which contingencies protect my deposit, and for how long?
- Inspection (often 7–10 days), financing approval (commonly 21–30 days), appraisal tied to financing, and title review (often 5–10 days) can provide refund rights if you act in writing before deadlines.
If my loan is denied, do I automatically get my earnest money back?
- Not automatically; you must follow the financing contingency, give timely written notice, and meet any good-faith and documentation requirements stated in your contract.
What if the property appraises low compared to my offer price?
- You may negotiate, bring extra funds, or terminate if allowed by your appraisal or financing clauses, which can make your deposit refundable if handled on time.
What happens if the seller cannot deliver clear title?
- If title defects cannot be cured within the contract period, you may be able to terminate and receive a refund as provided by the title clause.
What does “liquidated damages” mean for my deposit?
- It is a contract clause that can allow the seller to keep your earnest money as full damages if you default, so review that section closely with your agent.
How do I get my earnest money back if we disagree about it?
- The escrow holder will usually keep the funds until there is a mutual written release or a resolution through the contract’s dispute process, such as mediation or court order.
