Earnest money on an Arlington condo is typically 1-2%, held by the title company, and refundable if you cancel under a contingency. Here's how it works.

How much earnest money do you need on an Arlington condo, and is it refundable?

There’s no minimum, and in this market 1% to 2% of the price is typical. The title company usually holds the deposit, not the real estate broker. It’s refundable if you cancel under one of your contract’s contingencies, including financing, appraisal, inspection, or your review of the condo docs. It’s at risk only when you miss a deadline or cancel without a contractual reason.

Here’s the part most buyers get backwards. They worry about how big the check should be, then barely read the deadlines that decide whether they get it back. In my experience on Arlington condos, 1% to 2% of the price is typical, and after 325+ transactions I can tell you the amount rarely sinks a deal. A missed deadline can.

On a $500,000 condo, 1% is $5,000 and 2% is $10,000. Both are real money. Neither is a fee. It’s your money, applied toward your down payment or closing costs when you settle.

What earnest money does, and who holds it

The deposit tells the seller you’re serious. In a competitive building it’s one of the few levers you control besides price and terms. In a slower market, like the one Arlington condos have been drifting toward as inventory builds, a larger deposit buys you less than it used to.

Virginia doesn’t set a minimum. The amount is a term you negotiate in the contract, which is why it varies with the building and the competition.

The title company usually holds the deposit, not the broker. My brokerage doesn’t hold earnest money deposits at all. Your contract names the escrow agent and sets the due date, so read both before you wire anything.

Is earnest money refundable? Yes, if you cancel under a contingency

Your deposit is protected by the contingencies in your contract. If you void the contract under one of them, within its deadline, you get the deposit back. For a condo, these are the ones that matter:

  • Financing. If your loan falls through within the financing window, you can generally void and recover the deposit. Since August 3, 2026, lenders run a full project review on nearly every Arlington condo building, so give your lender time to finish it. A short financing window with a slow review is how deposits get put at risk.
  • Appraisal. If the unit appraises below the price, the appraisal terms in your financing addendum decide your options, and one of them is voiding the contract. Read them before you offer, not after the appraisal comes back.
  • Inspection. Condo inspections cover the unit, not the building, so this one is narrower than most buyers expect.
  • Condo docs review. The resale certificate, also called the condo docs, is ordered by the seller and the listing agent, not you, and you receive it after the contract is ratified. If what’s in the docs changes your mind, you can void the contract during the review period and get your deposit back. That period is a negotiable contract term, and in the standard contract it defaults to 3 days if left blank. Even at 0 days, you technically have until 9:00 PM the day the docs are delivered, but I’d never count on that window. If the docs arrive at 8:59 PM, you’re out of luck.

Miss a deadline, or cancel without a contractual reason, and the seller may be entitled to keep the deposit. That’s why I walk clients through the calendar before we write the offer.

What if you and the seller both claim the deposit?

If a deal falls apart and both sides claim the money, neither your agent nor the broker can release it. The title company holds it, and in general it stays there until you and the seller both sign a written release or a court orders where it goes. A clear contract helps, because it shows whose right to the deposit is stronger. A vague one can freeze the money for months.

If a dispute is on the horizon, talk to your agent early and get the title company’s requirements in writing. Don’t rely on a verbal agreement with the seller.

How to set your number

There’s no formula, but here’s how I think about it with buyers:

  • Start with 1% to 2%. That’s what I see most often in this market. Go toward the higher end where there’s competition, such as a well-run building with healthy reserves in Courthouse or Clarendon, and lower where there isn’t.
  • Pick a number you could afford to lose. You shouldn’t plan on losing it, but if your financing window is tight, size the deposit to the risk you’re taking.
  • Spend your leverage on contingency days, not just dollars. A longer, cleaner financing window protects you more than an extra few thousand in earnest money.
  • Wire safely. Confirm wiring instructions by calling the title company at a number you looked up yourself, never one from an email. Wire fraud targets exactly this moment.

Your deposit is part of your cash to close, so plan it alongside the rest of the closing costs Arlington condo buyers pay. And before you settle on a budget, see how condo fees shrink your buying power, because the fee affects your loan amount.

The right deposit for your offer depends on the building, how many offers you’re up against, and how fast your lender can clear the project review. Every building is different, and that’s where a building-level plan comes in.

Frequently Asked Questions

Is earnest money refundable on an Arlington condo?

Yes, if you void the contract under one of your contingencies within its deadline. That includes financing, appraisal, inspection, and your review of the condo docs. If you cancel after your deadlines pass without a contractual reason, the seller may be entitled to keep it.

Who holds the earnest money in a Virginia condo purchase?

Usually the title company, not the real estate broker. The contract names the escrow agent and the due date, so confirm both before you wire the deposit.

Does earnest money count toward my down payment?

Yes. At closing, the deposit is credited to you toward your down payment and closing costs, so it isn’t an extra expense on top of your cash to close.

What if the seller and I both claim the deposit?

The broker can’t release it. The title company generally holds the money until you and the seller both agree in writing or a court orders where it goes.

Is there a minimum earnest money amount?

No. It’s a negotiated term in your contract. In this market, 1% to 2% of the price is typical.

If you’re ready to buy smart, with building-level insight most buyers never get, let’s build your plan. Start your buying plan at ArlingtonCondo.com/buy.

About Rick Bosl

Rick Bosl is Arlington’s condo specialist, with 23+ years of experience, 325+ transactions closed, and $165M+ in sales volume focused almost exclusively on Arlington’s condo market. As the founder of ArlingtonCondo.com and Managing Broker at KW Metro Center, Rick knows every building, every floor plan, and what buyers in each neighborhood are willing to pay. He holds the CRS and GRI designations and brings an electrical engineering degree and MBA to every transaction, because condo decisions should be driven by data, not guesswork. Licensed in Virginia, Maryland, and DC.