Earnest money is a deposit a buyer pays when they make an offer on a home to show the seller they are serious about the purchase. It is not a fee that disappears. It goes toward the purchase price at closing. But if the deal falls apart, what happens to that money depends on why the transaction did not go through and what the purchase contract says. In some situations, you can get it back. In others, you cannot.
If you are buying or selling a home in 2026 and have questions about earnest money, a DuPage County real estate lawyer at The McCormick Law Firm, LLC can help you understand your rights before you sign anything.
How Much Is Earnest Money and Who Holds It?
There is no fixed amount required for earnest money in Illinois. It is typically between one and three percent of the purchase price, though it can be higher or lower depending on the market and what the parties agree to. On a $300,000 home, that might be anywhere from $3,000 to $9,000.