New Hampshire Earnest Money Rules: Amounts, Refunds & Disputes (2026)

By Andrew Phinney, REALTOR®, The Phinney Team at Keller Williams Realty Metropolitan

Quick answer: New Hampshire earnest money rules come from your purchase and sale agreement and from RSA 331-A:13. Earnest money in New Hampshire is typically 1–3% of the price (about $5,700 to $17,100 on the state's $569,900 August 2026 median), must sit in the listing brokerage's separate escrow account, earns interest for the buyer if the account is interest-bearing, is credited back at closing, and cannot be released in a dispute without a mutual written release, a court order, or the statute's 90-day certified-letter process.

How Much Earnest Money Do You Need in New Hampshire?

No New Hampshire law sets a minimum deposit. The amount is a negotiation signal, and in southern NH most accepted offers land between 1% and 3% of the purchase price. Using the New Hampshire Association of REALTORS® August 2026 single-family median of $569,900 (up 3.6% year over year), that works out to roughly $5,700 at 1%, $11,400 at 2%, and $17,100 at 3%.

Here is what the same percentages look like in the towns we write the most offers in, using year-to-date 2026 medians through August (NHAR Local Market Updates):

On condos and lower-priced homes, flat deposits of $1,000–$5,000 are still common. On luxury properties and cash offers we regularly see 5% used to strengthen the bid. Because the money is credited back to you at closing, a larger deposit changes how the seller reads your offer, not what the house costs you.

New Hampshire Earnest Money Rules: What RSA 331-A:13 Actually Requires

Most of what buyers hear about earnest money in New Hampshire is contract custom. A few things are actual law. The New Hampshire Real Estate Practice Act, RSA 331-A:13, sets these rules for any deposit a licensed brokerage holds:

• Separate escrow account. The principal broker must keep deposits in an escrow account separate from the firm's operating account, at an insured financial institution located in New Hampshire.
• Prompt deposit. Deposits on fully executed contracts must be deposited promptly. Your agent should be able to confirm receipt within a few business days.
• Interest goes to the buyer. If the broker places the deposit in an interest-bearing account, the interest accrues to the party who made the deposit and is applied toward the purchase price, unless the parties agree otherwise in writing.
• No spending uncollected funds. No checks may be drawn against a deposit that has not cleared.
• Release only on performance, agreement, or court order. The deposit may be forwarded to the closing attorney or title company for the closing itself. Otherwise it stays put until the contract closes, both parties sign a written release, or a court orders disbursement.
• The 90-day and 60-day rule. If a deposit sits unresolved more than 90 days past the contract's closing date, the broker may start a release process: a certified letter to all parties stating who will receive the funds. If nobody performs, signs a mutual release, or files suit within 60 days of that mailing, the broker may release the deposit as stated in the letter.
• The commission can audit. Every principal broker signs a permit allowing the NH Real Estate Commission to audit the escrow account.

Everything else, including the amount, the due date, and the conditions for a refund, is set by the purchase and sale agreement. That is why the dates in your contract matter more than the dollars.

Who Holds Earnest Money in NH?

In most New Hampshire transactions the listing brokerage holds the deposit in its escrow account. A title company or closing attorney can also serve as escrow agent; the purchase and sale agreement names the holder. The deposit is never handed directly to the seller. If a seller, a for-sale-by-owner, or anyone else asks you to make a deposit payable to them personally, stop and get advice before you send a dollar.

Wire fraud is the practical risk here. Confirm wiring instructions by phone using a number you already have for the brokerage or closing office, never one from an email, and send the funds the business day before they are due so a delay does not become a default.

When Is the Earnest Money Deposit Due?

Whatever the contract says. In southern NH it is commonly delivered with the offer or within a few business days of acceptance, and some sellers negotiate a second, larger deposit once the inspection contingency clears. Late delivery is itself a default under most agreements, so calendar the due date the moment you go under contract. Our step-by-step guide to making an offer on a house in NH walks through where the deposit fits in the offer itself.

Is Earnest Money Refundable in New Hampshire?

Yes, if you cancel within a contingency window and follow the notice rules in your contract. The standard NH purchase and sale agreement protects the deposit through the inspection, financing, and appraisal contingencies, plus title review. Terminate in writing inside any of those windows and the deposit comes back to you. Miss a deadline, waive a contingency, or walk away for a reason the contract does not cover, and the seller has a claim to keep it.

Of the offers our team has negotiated this year, the deposits that got contentious were almost never about the amount. They were about missed contingency deadlines. If you are thinking about waiving contingencies in New Hampshire to win a bidding war, understand that you are also waiving the exits that protect your deposit. And if the appraisal comes in low, the appraisal contingency is what lets you renegotiate or leave with your money.

What Happens to Earnest Money in a Dispute?

If the buyer and seller both claim the deposit, the escrow agent holds it. Under RSA 331-A:13, a broker who keeps the funds during a dispute and follows the parties' mutual written instructions or a court order cannot be sued for doing so, and either party can ask a court to have the funds paid into court. In practice, most disputes end in a negotiated split and a mutual release, because the cost of litigating a $10,000 deposit rarely makes sense for either side. The 90-day certified-letter process exists for the deals that simply go quiet.

Earnest Money vs. Down Payment: What Is the Difference?

Earnest money is a good-faith deposit made at contract. The down payment is the cash you bring at closing toward the purchase price. They are not additive: the deposit is credited against what you owe at closing, so it effectively becomes the first installment of your down payment and closing costs. A buyer putting 10% down who made a 2% deposit brings the remaining 8% plus closing costs to the table. Your lender will document the deposit, so keep the wire receipt or canceled check. Our financing page covers how the deposit shows up on your Closing Disclosure, and our NH closing costs guide covers the rest of the cash to close.

How Much Should You Offer This Fall?

Fall 2026 is looser than the spring was, but southern NH is still tight. Statewide inventory was up 18.7% year over year in August 2026 (NHAR), yet Manchester had just 0.8 months of supply, Nashua 1.0, and Bedford 2.3. With the 30-year fixed rate at 6.76% as of September 10, 2026 (Freddie Mac), buyers who are active now are serious, and sellers know it.

In that market, a credible deposit is still one of the cheapest ways to make an offer stand out without raising your price. Leading with 2% instead of 1% costs you nothing at closing and tells the seller you intend to perform. Earnest money in New Hampshire is one of the three levers, price, dates, and deposit, that every winning offer we write is deliberate about. If you are planning a purchase in Manchester, Nashua, or Bedford this fall, a buyer consultation with The Phinney Team covers the right deposit for your price band before you tour, and we can introduce you to a local lender who will document it correctly. Start on our teamphinney.com buying page.

Related reading

Under contract already? See what a New Hampshire purchase and sale agreement includes. Wondering what the listing status means? Read contingent vs. pending in New Hampshire. Closing soon? Our guides to what to do before closing and what happens at a NH real estate closing show where your deposit ends up.

Earnest Money in NH: Frequently Asked Questions

How much earnest money should I put down on a $500,000 NH home?

Plan on $5,000–$15,000 (1–3%). In a multiple-offer situation, 2–3% reads as a stronger commitment; in a slower negotiation, 1% is generally accepted. The money is credited back to you at closing, so a larger deposit changes perception, not your total cost.

Can the seller keep my earnest money in New Hampshire?

Only if you default, for example by walking away outside your contingency windows or missing a deposit deadline. If both parties claim the funds, the escrow holder keeps the deposit until there is a mutual written release or a court order. Cancel properly within a contingency and the deposit returns to you.

Does earnest money earn interest in New Hampshire?

It can. Under RSA 331-A:13, a broker may hold deposits in an interest-bearing escrow account, and the interest accrues to the party who made the deposit, applied toward the purchase price, unless the parties agree otherwise in writing. On a large deposit with a long closing, ask.

How long can a NH broker hold a disputed deposit?

Indefinitely, until there is a mutual release or court order. But once a deposit sits more than 90 days past the contract closing date, the broker may send a certified letter naming who will receive the funds; if no one signs a release or files suit within 60 days, the broker may release it.

Is earnest money required to buy a house in NH?

No law requires it, but virtually every accepted offer includes one. A contract with no deposit gives the seller no security that you will perform, and most listing agents will advise their sellers to pass. Even a modest deposit signals good faith.

Is earnest money the same as an option fee in New Hampshire?

No. New Hampshire does not use option fees the way Texas does. The earnest money deposit is the only up-front payment in a standard NH purchase and sale agreement, and it is refundable under the contract's contingencies rather than paid to the seller for the right to cancel.