Earnest Money in Texas
Around 1% of the sales price is customary — but the deadlines and the release rules are where deals get hurt.
Delivery
Due within 3 days after the Effective Date, to the escrow agent named in ¶5A. If day 3 is a weekend or legal holiday, delivery rolls to the next business day.
If the deal dies
Who keeps the earnest money depends on which exit was used. Terminating inside the option period refunds it to the buyer (the option fee stays with the seller). Default by either side triggers ¶15 remedies.
The release (¶18)
On termination either party can send a release; if one side demands the earnest money and the other doesn't object in writing within 15 days, the escrow agent may disburse. Wrongfully refusing to sign costs damages, the earnest money itself, and attorney's fees.
Educational only — not legal advice. TREC forms are for use by trained license holders; talk to your broker or an attorney about your specific transaction.
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