Shopping on both sides of the Columbia and hearing different rules about earnest money? You are not alone. Crossing from Portland into Clark County can bring new forms, timelines, and expectations. In this guide, you will learn what earnest money is, how Oregon and Washington practices compare, and the simple steps you can take to protect your deposit. Let’s dive in.
Earnest money 101
Earnest money is the good‑faith deposit you deliver after your offer is accepted. It shows the seller you are serious and gives them confidence while you complete inspections, appraisal, and loan approval. If you close, the deposit is applied to your purchase price or closing costs.
There is no single required amount. Your deposit is negotiable and set in the written purchase agreement. The size can influence how strong your offer appears, but it should match your budget and risk tolerance.
Typical amounts in Portland and Clark County
- Common ranges: 1 to 3 percent of the purchase price, or a flat amount such as 1,000 to 10,000 dollars depending on price and competition.
- In many Portland transactions, buyers offer a few thousand dollars on typical single‑family homes. Higher‑priced homes may see larger deposits.
- In hot markets, some buyers increase the deposit to stand out. Others keep contingencies in place for protection.
How to right‑size your deposit:
- Align with local custom and seller expectations for your price tier.
- Consider how many contingencies you will keep. Larger deposits with kept protections can still signal strength.
- Check with your lender about documenting the source of your earnest money.
Where your deposit goes
In both Oregon and Washington, the deposit usually goes to a neutral escrow or title company named in the contract. Sometimes a brokerage trust account holds it temporarily before escrow receives it. You will get a written receipt, and funds are held in a separate trust account.
Delivery timing is set in the purchase agreement. A common practice is 1 to 3 business days after acceptance. Always follow the contract deadline and use a traceable method like a verified wire or cashier’s check.
Oregon vs Washington: key practical differences
Forms and deadlines
Agents use different standard purchase agreement forms in each state. Oregon REALTORS forms are typical in Multnomah County. Washington REALTORS and NWMLS forms are common in Clark County. The clauses are similar in purpose but can differ in deadlines and how notices must be given. Read your exact form and calendar every date.
Who holds funds and receipts
Title and escrow companies in our region regularly handle deposits on both sides of the river. Your contract will name the holder. Confirm details early and keep your written receipt. Many regional firms operate in both states, which helps when you compare homes in Portland and Vancouver.
Remedies and dispute paths
If a dispute arises, escrow will usually hold the deposit until both parties sign a release or a court or arbitration decision directs disbursement. The procedures are outlined in the state forms. Outcomes often hinge on whether you met your contingency deadlines and provided proper written notice.
How your deposit is protected
Contingencies are your best protection when used on time and in writing:
- Inspection or due‑diligence contingency. You can end the deal within the inspection period if results are not acceptable.
- Financing contingency. If you cannot obtain the agreed loan and you provide required notice within the timeframe, you can cancel and reclaim the deposit.
- Appraisal contingency. If the appraisal is low and you cannot reach an agreement with the seller, you may cancel per the contract.
- Title contingency. If title issues cannot be cured per seller obligations, you can terminate.
- Sale of buyer’s home contingency. If applicable and exercised properly, your deposit is typically refundable.
When your deposit may be at risk
- You cancel after contingency deadlines without seller agreement.
- You waive a contingency and later try to exit for that reason.
- You default by refusing to close without a valid contract right.
In these situations, the seller may claim the deposit as liquidated damages if the contract allows. Always rely on the written agreement and deliver notices on time.
Portland examples you can picture
- Example A. Offer accepted on Day 0. You deliver 5,000 dollars to escrow on Day 1. The inspection period is 10 days. You terminate in writing on Day 8 based on inspection. Your deposit is returned in full.
- Example B. You waive inspection but keep a financing contingency through Day 21. Your loan falls through after that date and you did not cancel in time. The seller may claim your deposit.
- Example C. You believe you sent notice by the deadline, but the seller disputes it. Escrow holds the funds until a mutual release or a mediation or arbitration decision directs disbursement.
Step‑by‑step: protect your deposit
Before you write an offer
- Ask your agent about local norms in Multnomah and Clark County and choose an amount that fits the price tier and market.
- Decide which contingencies you need. Keeping inspection, financing, appraisal, and title protections is the strongest safeguard.
- Clarify seller expectations in multiple‑offer situations.
After acceptance
- Deliver the deposit by the contract deadline using a traceable method.
- Verify the escrow company named in your contract and confirm wiring instructions by phone using a number you look up independently.
- Get a written receipt from escrow and keep it with your records.
During contingencies
- Calendar every deadline the day your offer is accepted. Set reminders several days early.
- Put every request and notice in writing and keep copies.
- If you need extra clarity, request clear timelines for seller responses in your offer terms.
If a dispute arises
- Keep all communication in writing. Escrow typically needs a mutual release or a formal order to disburse funds.
- Follow the dispute resolution clause in your contract. Consider talking with a real estate attorney for significant issues.
- Loop in your agent’s managing broker for support.
Cross‑river specifics
- Confirm which state’s form you are using before you rely on a deadline or notice format.
- Ask about standard inspection periods and deposit sizes for the exact neighborhood and price tier you are targeting.
- Choose a title or escrow company that routinely closes in both Multnomah and Clark County.
What to avoid
- Never wire funds without independently verifying instructions by phone.
- Do not rely on verbal assurances about a refund. Require written terms and written releases.
Ready to buy in Portland or Clark County?
You deserve clear guidance that keeps your deposit safe while you compete with a strong offer. If you are comparing homes in Portland and Vancouver, a cross‑state strategy can save stress and money. Let’s tailor your earnest money plan to the market, the property, and your goals. Connect with Debra Penton‑Clark to get started.
FAQs
How much earnest money is typical in Portland?
- There is no set rule. Many buyers offer a few thousand dollars or about 1 to 3 percent of price, adjusted for competition and budget.
Who usually holds the earnest money deposit?
- A neutral escrow or title company named in the contract, or sometimes a brokerage trust account before it is transferred.
Can I get my deposit back if my loan is denied?
- If you kept a financing contingency and you cancel within the required timeframe with proper notice, you typically receive a refund.
Are Oregon and Washington rules very different?
- The protections and escrow practices are similar, but the state forms differ in deadlines and notice requirements, so read the exact contract you are using.
How fast do I need to deliver the deposit?
- Many agreements call for delivery within 1 to 3 business days after acceptance, but your exact deadline is set by your contract.
