What is earnest money and can I get it back?

Earnest money is a deposit you submit with your offer to show the seller you're serious about buying the home. It's typically held by the title company in Arizona and applied toward your down payment and closing costs at closing. Whether you can get it back depends on the contract terms and contingencies. If you cancel during the 10 day inspection period or another valid contingency window outlined in the AAR purchase contract, your earnest money is generally refundable. If you cancel outside those timeframes without a valid reason, the seller may be entitled to keep it. The amount varies but is often 1 to 3 percent of the purchase price. Protecting your earnest money depends on following contract timelines carefully.