Earnest Money in Maine: How Deposits, Refunds and Forfeiture Work

Negotiate an amount you understand

There is no single deposit percentage that answers every Maine offer. Discuss the amount in the context of the property, financing, available cash and contract terms. A $500 or $1,000 deposit cannot be called sufficient or insufficient without knowing what the parties will accept and what the agreement requires.

The NAR consumer guide to escrow and earnest money explains the general role of the deposit. For your offer, have the written terms identify the amount, when it is due and who holds it. If a later installment is required, put that deadline on the calendar too.

Distinguish the deposit from the down payment

Earnest money is paid earlier in the transaction. The down payment is the buyer’s equity contribution to the purchase under the financing arrangement. At closing, the deposit is accounted for as money already paid, reducing the remaining funds due as the settlement statement shows.

Illustration only: a $400,000 price with a $40,000 down payment and $5,000 already deposited would leave $35,000 of that down payment still to fund. Closing costs, credits, prepaids and other adjustments would change the actual cash needed. Have the lender and closing team reconcile the full amount rather than counting the deposit twice.

Know which protections your agreement actually provides

Inspection, financing, appraisal or other contingencies may create rights to terminate and seek a deposit return if their conditions are met. They are not blanket permission to cancel at any time. Read the notice requirements, dates and any obligations to act or provide documentation.

Before signing, ask your agent and, where appropriate, attorney to explain what would happen if an inspection raises concerns, financing fails or you simply change your mind. A waived contingency can change the risk. Do not assume a lender’s rejection by itself satisfies every contractual requirement.

Act before the deadline and preserve the record

Keep the agreement, amendments, delivery confirmation and communications about the deposit together. If a problem develops, contact your agent promptly and obtain legal advice for questions about termination or liability. Ask exactly how any required notice must be delivered and who must receive it.

Requesting an extension does not mean it has been granted. Get an agreed extension documented before relying on additional time. If you default or fail to exercise a contractual right properly, the deposit may be at risk; other consequences depend on the agreement and law. Do not treat the deposit as a guaranteed cap on potential liability.

Understand that a disputed refund has a process

A buyer’s request for the money is not always enough for immediate release. The Maine Real Estate Commission consumer FAQ directs readers to trust-account rules governing disputed deposits. The applicable process depends in part on who holds the funds and the circumstances.

Ask the holder what documentation is required and consult an attorney if entitlement is disputed. Independently confirm payment instructions through a trusted contact method before sending funds. Your next step before offering is to understand the deposit amount, deadlines, cancellation conditions and release procedure in your actual agreement. Sources reviewed November 3, 2026.

Prepare for the offer before sending the deposit

Get my free Maine Home Buyer’s Guide using the Home Buyer Guide form with your name and email. It outlines the offer-to-closing steps. I can help organize your questions and deadlines, while an attorney can advise on contract interpretation or a deposit dispute.