An escrow receipt is the written confirmation that your earnest money deposit has arrived in the neutral third-party account set up for your real estate transaction. The escrow agent issues it once the funds clear, and it serves as proof to the seller, the lender, and you that the deposit was made in the amount and on the date the contract requires. That small document is what moves the deal from signed offer into the inspection and financing phase, and it’s the first piece of evidence anyone will look for if the transaction later falls apart.
What’s on the Receipt
A proper escrow receipt identifies exactly who deposited what, when, and into which transaction. Most jurisdictions require it to show the depositor’s name, the dollar amount received, the date the funds arrived, how the money was paid (wire transfer, cashier’s check, or personal check), the file or transaction number, and the signature or initials of the person who received the funds. Some escrow companies also list the property address, though the file number is the primary tracking reference rather than the escrow account number.
The amount on the receipt is usually the buyer’s earnest money, which typically runs between 1% and 3% of the purchase price depending on how competitive the market is.1Freddie Mac. What Is Earnest Money and How Does It Work In a hot market buyers sometimes go higher to signal seriousness. Whatever the number, the receipt must reflect the exact figure credited to the account. Rounding and estimates defeat the point of the document.
Small errors can create big problems later. A wrong date, misspelled name, or transposed digit in the deposit amount can delay closing or weaken your position in a dispute. If anything on the receipt is inaccurate, raise it with the escrow officer right away and ask for a corrected version in writing before the deal moves forward.
When You Should Expect It
The receipt can only be generated after the funds have actually cleared the escrow company’s bank account. Domestic wire transfers usually settle the same business day, so the receipt often arrives within 24 hours. Cashier’s checks take a day or two longer because the bank verifies and processes the instrument. Personal checks take the longest, since the escrow company has to wait for the check to clear before acknowledging receipt.
Most state regulations require the receipt to be provided at the time funds are received or, for mailed payments, within a set window afterward. If you’ve sent money and haven’t seen a confirmation within two business days, call the escrow officer directly. Don’t rely on email alone to chase it down, given how common wire fraud has become in real estate.
Once the receipt is issued, your agent typically forwards it to the seller’s side to confirm the earnest money obligation has been met. That satisfies one of the earliest financial contingencies in the purchase agreement and clears the path to inspections, the appraisal, and the lender’s underwriting review. Lenders usually want to see the receipt as well, though they rarely get it automatically. You or your agent is the one who sends it over.
Paper or Electronic
Most escrow receipts today are generated and delivered through secure online portals. Under federal law, an electronic signature or electronic record cannot be denied legal effect simply because it exists in digital form rather than on paper.2Office of the Law Revision Counsel. 15 USC 7001 – General Rule of Validity A digitally signed escrow receipt carries the same weight as one signed in ink, as long as the signer meant to authenticate it.
If the escrow company uses a portal, you’ll usually need to consent to receive documents electronically. The company has to disclose the hardware and software requirements, your right to withdraw consent, and how to request paper copies. If the portal doesn’t work for you, ask the escrow office to mail or hand you a physical copy.
Verify Wiring Instructions Before You Send Money
The receipt is proof your money arrived in the right place. Making sure it goes to the right place in the first place is a separate problem, and a serious one. Criminals steal more than $275 million a year through real estate wire fraud, usually by intercepting email and sending fake wiring instructions that redirect the deposit into an account they control.3National Association of Realtors. Online Real Estate Fraud Climbed to $275M in 2025, FBI Says Once a wire lands in the wrong account, the money is usually gone within minutes.
The scheme almost always runs the same way. A scammer compromises the email account of a real estate agent, escrow officer, or closing attorney. You then receive a message that looks completely legitimate, with the correct file number and property address, telling you to wire the deposit to a new account. The email may explain that the company recently changed banks, or that the usual account is temporarily unavailable.
The defense is simple and non-negotiable. Before sending a wire, call the escrow company at a phone number you found independently, not one listed in the email. Verify the routing number, account number, and recipient name over the phone. Never trust wiring instructions received only by email, even from someone you’ve been working with for weeks. If the instructions change at the last minute, treat that as a red flag and verify again before sending anything.
When the Deposit Comes Back and When It Doesn’t
The money documented on the receipt isn’t automatically refundable. Whether you get it back depends almost entirely on the contingencies written into your purchase agreement. Standard contingencies cover inspection, financing, and appraisal. If one of those isn’t satisfied within the deadline the contract sets, you can usually cancel and recover the deposit.
Trouble starts when contingency deadlines pass. Once an inspection contingency expires, for example, you’ve effectively given up the right to back out over inspection problems without risking the deposit. Walking away after every contingency has expired usually means losing the earnest money to the seller. Other common forfeiture triggers include:
- Missing contractual deadlines without negotiating extensions
- Changing your mind outside any contingency period
- Failing to secure financing when no financing contingency was included
- Making a non-refundable deposit as part of an aggressive offer
Buyers often assume earnest money is always refundable because it’s “just a deposit.” It isn’t. Treat every contingency deadline as a hard line, and if you need more time, get an extension in writing before the deadline passes.
What Happens When Both Sides Claim the Money
When a deal collapses and the buyer and seller disagree about who gets the earnest money, the escrow agent is stuck in the middle. The agent cannot release the funds to either side without authorization from both or a court order. The receipt matters here because it documents exactly what was deposited and when.
Resolution usually starts with one party making a written demand for the funds. The escrow agent notifies the other party. If no objection comes in within the timeframe set by the escrow agreement or state law, the agent may release the money to the party who demanded it. If the other side objects, the money stays frozen.
When neither side will move, the escrow agent can file an interpleader action. The agent deposits the disputed funds with the court and asks a judge to decide who gets them. Once the money is on deposit and everyone has been notified, the agent is released from further liability. The parties then argue their case, and the court distributes the money based on the contract and the circumstances of the failed deal. Interpleader adds legal cost and delay, which is why most disputes settle through negotiation first.
Earnest Money Escrow Is Not Your Mortgage Escrow
The word “escrow” appears twice in most home purchases, and the two uses mean very different things. The earnest money escrow is the one-time account discussed throughout this article, the holding account for your good-faith deposit before closing. The mortgage escrow account is something else entirely: an ongoing account your lender maintains after closing to collect and pay property taxes and homeowners insurance on your behalf. Federal rules under RESPA cap how much the servicer can hold in that account and require an annual statement of what came in and went out.4eCFR. 12 CFR Part 1024 – Real Estate Settlement Procedures Act
Your escrow receipt has nothing to do with that ongoing mortgage escrow. If someone mentions “your escrow account” after closing, they almost certainly mean the tax-and-insurance account managed by your loan servicer, not the account where your earnest money briefly sat.