How to Pay Earnest Money Safely, Without Falling for Wire Fraud

You pay earnest money to the escrow holder named in your contract, usually by wire transfer, cashier’s check or personal check, within a few days of the accepted offer. Before you send a wire, call the holder at a number you found on your own and confirm the account details by voice.

That phone call is the most important step. Criminals send fake wiring instructions to home buyers, and a wire is hard to get back. Once you know how much earnest money to put down, follow the steps below to get it to the right place.

When it’s due

Your contract sets the deadline. Many contracts give the buyer a few days after the offer is accepted. The standard Texas resale contract, for example, requires delivery to the escrow agent within 3 days after the effective date, extended to the next business day if the last day falls on a weekend or legal holiday.

Late payment can be a breach. Under that Texas form, if the buyer doesn’t deliver the earnest money on time, the seller may terminate the contract or pursue other remedies. See when earnest money is due for more on deadlines.

Ways to pay

Method	Speed	Notes
Wire transfer	Same day in many cases	Most common for larger amounts. Hardest to reverse if sent to the wrong account.
Cashier’s check	Same day if you deliver it	Bank guaranteed. Some holders prefer it.
Personal check	Days to clear	Accepted by many holders, but some may not release funds until it clears.
Electronic transfer or ACH	One to a few days	Offered by some title companies through their own secure portal.

Which methods are allowed depends on the holder and sometimes the contract. Ask before you pay. For more on checks, see whether earnest money can be a personal check. Credit cards are rarely an option, and the FAQ on paying earnest money with a credit card explains why.

Steps to pay earnest money safely

1. Find the holder’s name in your signed purchase agreement. Ask your agent who it is if it’s unclear.
2. Look up the holder’s phone number yourself, from their official website or a number your agent gave you in person.
3. Call and ask for the wiring instructions or check payee. Write them down.
4. Before sending a wire, call again at that same trusted number to confirm the account name and number.
5. Send the money from your own bank account, in the exact amount in the contract.
6. Call the holder to confirm they received it.
7. Get a written receipt that shows the amount, date and property address.

The earnest money calculator shows the percentage your deposit represents, which helps you double check the figure in the contract before you send it.

The wire fraud warning

Real estate wire fraud usually starts with a hacked or spoofed email. The buyer gets a message that looks like it’s from the agent, title company or attorney, with “updated” wiring instructions. The account belongs to a criminal.

The FBI’s Internet Crime Complaint Center counts these schemes under business email compromise. In its 2025 annual report, IC3 recorded 24,768 business email compromise complaints with reported losses of about $3.05 billion. The same report describes a couple who were closing on a home when they got an email impersonating their attorneys. They wired more than $449,000 to the wrong account. After they reported it to their bank and filed with IC3, the FBI asked the receiving bank to freeze the account, and the full amount was still there.

That case ended well because they acted fast. Not every stolen wire can be recovered.

What the CFPB recommends

The CFPB gives buyers a simple set of rules for protecting closing funds from scams:

• Pick two trusted contacts, such as your agent and your settlement agent, and talk through payment plans in person or by phone.
• Never follow wiring instructions contained in an email.
• Don’t click links or open attachments until you’ve confirmed them with your trusted contacts.
• Don’t send financial information by email.
• Be wary of calls asking you to verify personal or financial details.

The same rules apply to the larger wire you send at closing.

If something goes wrong

The IC3 report says time matters. If you find a fraudulent transfer, contact your bank right away, ask it to recall the funds, and file a complaint at ic3.gov with the full transaction details, whatever the amount. Then tell your agent and the real escrow holder.

Keep the paper trail

Your lender will likely want proof of where the deposit came from. Fannie Mae’s Selling Guide has lenders verify receipt of the deposit with a copy of the canceled check or a written statement from the deposit holder. Bank statements also have to show you had the money.

Keep these in one folder:

• The receipt from the escrow holder
• The wire confirmation or a copy of the check
• Bank statements for the months before and after the deposit

If a relative is helping, read whether earnest money can be a gift before the money moves.

After you pay

The money now sits with the holder until closing. The guide on who holds earnest money explains what they can and can’t do with it. If the deal later falls apart and both sides claim the deposit, see the guide on earnest money disputes.