📋 What is an Earnest Money Depósito?

An earnest money depósito (also called a "buena fe depósito") is money a buyer provides when making an offer on a property to demonstrate serious intent to purchase. In California, these deposits are typically 1-3% of the purchase price and are held in escrow. When a transaction fails to close, disputes often arise over who tiene derecho a keep the depósito.

Cuándo Usar Esta Guía

Use this guide if you are a buyer seeking return of your earnest money depósito because:

🚫 Seller Breached Contract

Seller failed to perform obligations under the purchase agreement

✅ Contingency Not Satisfied

Inspección, financing, appraisal, or other contingency was not met

🔄 Mutual Cancellation Dispute

Both parties agreed to cancel but disagree on depósito allocation

🔒 Escrow Holding Funds

Escrow company refuses to release funds without both signatures

👍 Lo Que Puede Recuperar

  • Full depósito amount - The earnest money you deposited in escrow
  • Interest earned - Interest accrued on the depósito while in escrow
  • Abogado fees - If your purchase agreement contains an abogado fee provision
  • Consequential daños - Additional costs caused by the breach (in some cases)

Common Earnest Money Dispute Scenarios

🚫 Seller Incumplimiento de Contrato

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When el vendedor fails to perform their obligations under the purchase agreement - tales como failing to make agreed reparaciones, refusing to provide required disclosures, or simply refusing to close - el comprador is typically entitled to a full reembolso of the earnest money depósito plus any additional daños.

🔍 Failed Inspección Contingency

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If el comprador properly exercises their inspección contingency rights within the contractual timeframe, they tienen derecho a cancel the transaction and receive a full reembolso. The key is providing timely aviso por escrito and following the contract's cancellation procedures exactly.

💰 Failed Financing Contingency

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When a buyer cannot obtain financing despite buena fe efforts, and they have a valid financing contingency, they should receive their depósito back. Buyers must document their loan application efforts and provide timely notice of loan denegación.

📈 Failed Appraisal Contingency

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If the property appraises for less than the purchase price and there is an appraisal contingency, el comprador can typically cancel and receive their depósito back - unless they agreed to make up the difference or waived the contingency.

🔄 Mutual Cancellation Disputes

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When both parties agree to cancel but cannot agree on who gets the depósito, the funds remain in escrow. California law provides a specific procedure for releasing disputed deposits under código civil 1057.3.

⚠ Time is Critical

California has a 4-year prescripción for written contract claims (Code of Civil Procedure 337). Sin embargo, acting quickly is essential - witnesses forget, documents get lost, and some purchase agreements have shorter contractual deadlines. Start the demand process immediately.

✅ Lista de Evidencias

Gather these documents before sending your carta de demanda. Click to check off items as you collect them.

📄 Documentos del Contrato

  • ✓ Residential Purchase Agreement (RPA) with all signatures
  • ✓ All counter-offers and addenda
  • ✓ Contingency removal forms (if any were signed)
  • ✓ Cancellation of Contract form

💰 Depósito Evidencia

  • ✓ Escrow depósito receipt showing amount deposited
  • ✓ Bank statements or canceled checks proving payment
  • ✓ Wire transfer confirmation (if applicable)
  • ✓ Escrow instructions and escrow number

📩 Cancellation Evidencia

  • ✓ Written cancellation notice with date/time proof
  • ✓ Contingency-related documents (inspección reports, loan denegación letter, appraisal)
  • ✓ Email/text correspondence about cancellation
  • ✓ Agent communications regarding depósito release

🔍 Seller Breach Evidencia

  • ✓ Documentation of seller's failure to perform
  • ✓ Missing or false disclosures
  • ✓ Evidencia of title defects or encumbrances
  • ✓ Written demands sent to seller/seller's agent

🔒 Preserve All Evidencia

Keep originals of all documents. Screenshot text messages and save emails. Document all phone calls with follow-up written confirmation. Your paper trail proves your right to the depósito and when you properly cancelled.

💰 Calcule Sus Daños

In earnest money disputes, usted puede tener derecho a more than just the depósito itself. Here is what usted puede recuperar.

Category Descripción
Earnest Money Depósito The full amount you deposited into escrow
Interest Earned Any interest that accrued on the depósito while held in escrow
Honorarios de Abogado If your purchase agreement has an abogado fee clause (most C.A.R. forms do)
Costs of Suit Filing fees, service costs, and other litigio expenses
Daños Consecuentes Additional losses caused by the breach (inspección costs, appraisal fees, etc.)

💰 Abogado Fee Recuperación - A California Advantage

Under California código civil 1717, if your purchase agreement contains an abogado fee provision (which most do), the prevailing party in a dispute can recover their abogado fees. This makes it financially viable to pursue even smaller depósito amounts.

📊 Ejemplo de Cálculo de Daños

Example: Seller Breach with $25,000 Depósito

Earnest money depósito $25,000
Interest earned in escrow (6 months) $375
Inspección costs (non-refundable) $650
Appraisal fee (if seller breach) $550
Abogado fees (estimated if litigio needed) $5,000
TOTAL POTENCIAL DE RECUPERACIÓN $31,575

💡 Liquidated Daños Clauses

Be aware that California purchase agreements typically contain a liquidated daños provision that limits el vendedor's daños to 3% of the purchase price if el comprador breaches. Sin embargo, this does NOT limit what a buyer can recover if el vendedor breaches. If el vendedor breached, usted puede tener derecho a actual daños beyond just the depósito.

📝 Texto Modelo

Copiar and customize these paragraphs for your carta de demanda.

Opening Paragraph - Contingency Cancellation
I am writing to formally demand the immediate release of my earnest money depósito in the amount of $[DEPOSIT AMOUNT] currently held in escrow at [ESCROW COMPANY NAME], Escrow Number [ESCROW NUMBER]. As documented below, I properly cancelled the purchase agreement for [PROPERTY ADDRESS] within the contingency period, and I am entitled to a full reembolso of my depósito.
Opening Paragraph - Seller Breach
I am writing to formally demand the immediate release of my earnest money depósito in the amount of $[DEPOSIT AMOUNT] plus all accrued interest and additional daños resulting from your breach of the Residential Purchase Agreement dated [CONTRACT DATE] for the property located at [PROPERTY ADDRESS]. Your failure to [DESCRIBE SELLER'S BREACH] constitutes a material breach entitling me to cancel the transaction and recover my depósito.
Contingency Exercise Documentation
de conformidad con the Residential Purchase Agreement, I was provided until [CONTINGENCY DEADLINE] to complete my [INSPECTION/FINANCING/APPRAISAL] contingency. On [CANCELLATION DATE], antes de the contingency deadline, I delivered aviso por escrito of cancellation to [SELLER/SELLER'S AGENT] via [EMAIL/FAX/HAND DELIVERY]. The cancellation was timely, properly delivered, and I am entitled to a full reembolso of my earnest money depósito under the terms of the contract.
Base Legal - código civil 1057.3
California código civil Section 1057.3 governs the release of disputed earnest money deposits. If you fail to execute release instructions or continue to wrongfully reclamación entitlement to my depósito, I will exercise my rights under this statute. de conformidad con código civil 1057.3, I am submitting a written demand to the escrow holder for release of the depósito. You will have 30 días to object in writing; absent a valid objection, the escrow holder está obligado a release the funds to me. Adicionalmente, under código civil 1717 and the abogado fee provision in our purchase agreement, I will seek recuperación of all abogado fees and costs incurred in obtaining the return of my depósito.
Demand and Deadline
I hereby demand that you immediately execute the escrow cancellation instructions and authorize the release of my earnest money depósito in the amount of $[DEPOSIT AMOUNT] plus all accrued interest. Please execute and return the attached release authorization within [10/15] days of the date of this letter. If I do not receive the executed release authorization and my depósito is not returned by this deadline, I will pursue all available legal remedies, including filing a demanda judicial seeking the depósito, interest, abogado fees, and any additional daños to which I am entitled.

🚀 Próximos Pasos

Qué hacer después de enviar su carta de demanda.

Cronograma Esperado

Days 1-5

Seller and escrow company receive your carta de demanda

Days 5-15

Seller/seller's agent review and respond or ignore demand

Días 15-30

If no signed release, begin código civil 1057.3 escrow demand process

Si Se Niegan to Release

  1. código civil 1057.3 Demand to Escrow

    Enviar a written demand directly to the escrow holder for release of the depósito. Escrow must then notify the other party who has 30 días to object.

  2. Tribunal de Reclamaciones Menores (Up to $12,500)

    For deposits under $12,500, tribunal de reclamaciones menores is fast and inexpensive. No abogado needed. File in the county where the property is located.

  3. Superior Tribunal Demanda Judicial

    For larger deposits or if you want abogado fee recuperación, file in Superior Tribunal. The abogado fee clause makes this financially viable.

  4. Mediación/Arbitraje

    Many C.A.R. purchase agreements require mediación before arbitraje or litigio. Check your contract's dispute resolution provisions.

¿Necesita Ayuda Legal?

Earnest money disputes can be complex. Get a 30-minute strategy call with an abogado to evaluate su caso and discuss next steps.

Agendar Consulta - $125

Recursos de California

  • Depto. de Bienes Raíces de CA: dre.ca.gov - File demandas against licensees
  • Código Civil de California: leginfo.legislature.ca.gov - Full text of 1057.3
  • Tribunal de Reclamaciones Menores: courts.ca.gov/selfhelp-smallclaims.htm
  • Referencia de Abogado del Colegio de Abogados: calbar.ca.gov
  • C.A.R. Forms: car.org - Standard purchase agreement forms