#earnest-money

#earnest-money

Escrow disbursement releases escrowed funds to pay closing costs, agent commissions, title fees, and seller proceeds only after all contractual conditions are satisfied.

Earnest money proves buyer commitment and applies to closing; option fees buy a right to terminate during the option period; refunds depend on contract terms.

Earnest money in Texas is typically 1–3% of the purchase price and must be delivered to escrow within contract deadlines to secure the buyer's offer.