Making an offer in The Avenues feels exciting and a little high stakes. With limited inventory and strong buyer interest, your earnest money can help your offer stand out and protect you at the same time. If you understand how deposits, contingencies, and timelines work in Utah, you can move with confidence and avoid costly mistakes. This guide breaks it all down in plain language so you know what to do, when to do it, and how to protect your funds. Let’s dive in.
What earnest money means in Utah
Earnest money is your good faith deposit. It shows the seller you are serious and gives the contract weight. In many Utah transactions, a typical range is 1% to 3% of the purchase price. In more competitive situations, some buyers offer 3% to 5% or adjust other terms to strengthen their offer.
In The Avenues, competition can be strong. Sellers and listing agents often look closely at the size of the deposit and the speed of your timelines. There is no required amount. You and the seller agree on earnest money in the purchase contract, so work with your agent to set a number that matches current market conditions and your comfort level.
How escrow works in Utah
Your purchase contract will name who holds the earnest money and when you must deposit it. In many Utah deals, buyers deliver funds to a title or escrow company, or to the listing broker’s trust account. The deposit deadline is set in the contract. Many contracts use a window like 1 to 3 business days after acceptance, but always follow the exact terms you sign.
Once deposited, your earnest money stays in a trust or escrow account with strict recordkeeping. Ask for a written receipt with the date and where the funds are held. At closing, your earnest money is usually applied to your down payment or closing costs. If you cancel within a permitted contingency window, it is typically refunded according to the contract.
Contingencies that protect your deposit
Contingencies are the safety valves in your contract. They give you time to investigate, secure financing, and review documents. If you act within the deadlines and follow notice rules, your earnest money is usually protected.
Inspection and investigation
- Purpose: Evaluate the home’s condition and negotiate repairs or credits.
- Typical period: Often 7 to 14 days, but negotiable.
- Protection: If you cancel within this window per the contract, your earnest money is usually refundable.
Financing contingency
- Purpose: Protects you if your loan approval does not come through.
- Typical period: Lender timelines vary, often around 17 to 30 days from acceptance.
- Protection: If you cannot obtain financing and follow contract notice steps on time, your deposit is typically refundable.
Appraisal contingency
- Purpose: Covers you if the appraised value is below the purchase price.
- Options: You can renegotiate price, bring more cash, or cancel within the appraisal timeline.
Title review
- Purpose: Review the title report for issues. The seller generally must cure unacceptable problems or you may terminate if not resolved.
HOA and document review
- Purpose: Time to review HOA rules and documents. If they disclose something unacceptable to you, the contract may allow cancellation within the period.
Sale of your home
- Purpose: Allows your purchase to depend on the sale of your current home.
- Note: In a competitive market, sellers may prefer offers without this contingency or with stricter timelines.
Remember, once you remove contingencies, it becomes much harder to get earnest money back if you cancel later. Always follow the notice and deadline rules in your contract.
A practical Avenues timeline
Every transaction is unique, but here is a common sequence you can expect in The Avenues. Your actual contract controls the dates.
- Offer accepted on Day 0
- Buyer and seller sign the purchase contract.
- Deposit earnest money within 1 to 3 business days
- Deliver funds per the contract to the named escrow holder. Get a written receipt.
- Inspection period during Days 7 to 14
- Order a general home inspection right away. For older homes, consider specialty inspections like roof, sewer scope, or pest if recommended by your inspector. Decide to proceed, negotiate, or cancel within the deadline.
- Loan and appraisal during Days 3 to 21
- Your lender processes the file, orders the appraisal, and moves you through underwriting. Financing deadlines often fall around 17 to 30 days, depending on loan type and contract terms.
- Title and HOA review during Days 7 to 30
- Review title documents and HOA materials if applicable. Object within the allowed window if needed.
- Closing around Days 30 to 45
- Conventional loans often close in this range. All-cash can be faster. Jumbo or unique loan programs may take longer.
- Release of earnest money
- At closing, the deposit is applied to your costs. If you cancel under a valid contingency, escrow typically refunds your deposit. If there is a dispute, funds stay in escrow until the parties agree in writing or an arbitrator or court directs release.
Release, disputes, and how funds move
Escrow companies usually need signed instructions from both parties to release earnest money. If both sides agree on who should receive the funds, release is straightforward. If there is a disagreement, the purchase contract’s dispute resolution clause guides next steps.
When disputes happen, escrow will hold the funds until there is a written agreement or a final decision from an arbitrator or a court. Utah rules govern how trust accounts are managed. If you face a serious dispute, consider speaking with a real estate attorney.
Common risks include missing deposit deadlines, removing contingencies too early, or failing to deliver notices on time. You can reduce risk by tracking every deadline, confirming all notices in writing, and asking your agent to verify each step.
Buyer checklist for The Avenues
Use this checklist to move fast without losing protection.
Before you write an offer
- Get a lender preapproval in writing. Strong offers usually include it.
- Keep earnest funds ready in an account you can access quickly.
- Set your strategy with your agent. Decide on inspection period length, financing and appraisal timelines, and whether to include a home sale contingency.
- Identify a preferred title or escrow company early.
Right after acceptance
- Deposit earnest money immediately per the contract. Get a written receipt.
- Send the executed contract to your lender the same day to start underwriting.
- Book your home inspection right away. Add specialty inspections if advised by your inspector.
- Confirm who holds funds and how release works at closing.
During the transaction
- Track all contingency deadlines in writing. Do not miss a date.
- Respond quickly to lender requests for documents.
- Keep your agent, lender, and escrow officer in the loop on all updates.
At closing or termination
- If closing, confirm how your deposit is applied on the settlement statement.
- If terminating under a contingency, sign a mutual release so escrow can return funds.
- If there is a dispute, follow the purchase contract’s dispute steps. Escrow will hold funds until there is a written resolution or final decision.
Security and fraud cautions
- Wire fraud is real. Always verify wiring instructions by calling your escrow officer at a known phone number. Do not rely on email alone.
- Consider a cashier’s check if advised by escrow. Keep every receipt and confirmation.
Smart strategies for Avenues buyers
- Offer the right deposit. In Utah, 1% to 3% is common, but The Avenues can be competitive. Talk with your agent about whether a higher deposit or faster timelines will help.
- Move fast, but protect yourself. Shorter inspection or financing windows can strengthen your offer. Only tighten deadlines if you can meet them.
- Keep contingencies until you are ready. Do not remove protections until inspections, appraisal, title review, and financing are on track.
- Document everything. Send notices in writing, and save receipts and emails.
Work with a systems-driven advisor
Buying in The Avenues rewards preparation. You win by pairing a strong offer with clean execution, clear documentation, and strict deadline management. A detail-focused process keeps your deal moving and protects your earnest money all the way to closing.
Ready to plan your offer and deposit strategy for The Avenues? Book a consultation with Christian Casados to map out your timelines, protections, and next steps.
FAQs
What is earnest money in Utah for The Avenues?
- It is a good faith deposit that shows you are serious, typically applied to your closing costs or down payment at closing.
How much earnest money should I offer in The Avenues?
- Many Utah offers use 1% to 3%, and competitive listings may see 3% to 5%; the right number depends on the property and market conditions.
How fast do I need to deposit earnest money in Utah?
- Many contracts require deposit within 1 to 3 business days after acceptance, but your signed contract sets the exact deadline.
Which contingencies protect my earnest money?
- Common protections include inspection, financing, appraisal, title review, and HOA document review, each with specific timelines and notice rules.
What happens to my earnest money if the deal falls through?
- If you cancel within a valid contingency period and follow notice procedures, escrow typically refunds your deposit per the contract.
How do disputes over earnest money get resolved?
- Escrow usually needs a signed mutual release or a final decision from an arbitrator or court before disbursing funds.
How can I avoid wire fraud when sending earnest money?
- Verify wiring instructions by phone using a known number, not an email link, and request written confirmation from escrow after the funds are sent.
