Earnest Money and Trust Accounts


WHITE PAPER: Earnest Money

Published by OAR’s Legal Services Group (2009)
Summary: Earnest money deposits are involved in almost every real estate transaction. Although not essential to the creation of a valid and binding purchase agreement, it is the rare residential real estate transaction that does not require the buyer to make an earnest money deposit. The earnest money is almost always turned over to the real estate broker who holds the money in trust for the parties to the transaction. Since the Ohio real estate licensing laws place some very definite obligations on the broker with respect to the earnest money deposit, it is the purpose of this paper to discuss generally the law of earnest money and, more specifically, the manner in which the broker should handle the earnest money deposit to comply with the state licensing laws.

FAQS: Earnest Money: General/License Law

Published by OAR’s Legal Services Group
Summary: FAQs: Earnest money deposits; responsibility for holding the deposit and accepting other offers. See ODRE’s Sample form: trust account ledger

FAQS: Earnest Money: Property Management Accounts

Published by OAR’s Legal Services Group

Trust Account Responsibilities