Your offer on a home in Queens has been accepted, and now your agent and attorney are talking about “going to contract” — and a check for tens of thousands of dollars. That check is earnest money, and for many buyers in Queens NY real estate it is the largest payment they make before closing day.
What Earnest Money Is — and What It Is Not
Earnest money is a deposit showing good faith on a signed contract to buy a home. In New York City it is more often called the contract deposit. It is not a fee, and it is not extra money on top of the price: at closing, it is credited toward what you owe.
It is not the same as your down payment, though it counts toward that total. The down payment is the share of the price you pay from your own funds; the contract deposit is paid much earlier, when the contract is signed. It is also not the post-closing escrow account a lender may set up for taxes and insurance.
How Much Do Queens Buyers Usually Pay?
The customary contract deposit in New York City is 10 percent of the purchase price. That is common practice, not a law, and your deal is governed by the signed contract. Higher deposits sometimes appear in bidding wars; lower or staged deposits sometimes appear in new-development sales. Your attorney should confirm the amount, payee, and deadline before you sign.
At 10 percent, the sums are large. According to Realtor.com’s October 2026 data for Queens County, the median sold price was $712,500 — a customary deposit of $71,250. On $650,000 it would be $65,000; on $1,000,000, $100,000. Have it ready and liquid on the contract date.
Who Holds the Deposit?
In a typical Queens purchase, the buyer delivers the deposit to the seller’s attorney, who holds it in an attorney escrow account. The seller cannot spend it. The escrow agent is a fiduciary: funds stay separate and are released only as the contract directs, by agreement, or by court order if there is a dispute.
The deposit stays in escrow until closing, when it is credited to the purchase price. Interest is typically minimal, and the contract usually states who receives it. New-development deposits can differ under separate state escrow rules.
When Do Buyers Get the Deposit Back?
Most Queens contracts include contingencies that protect the deposit if something specific goes wrong:
- Mortgage contingency. If you apply promptly and in good faith and the lender denies the loan within the contingency period, you can generally cancel and recover the deposit, with written notice before the deadline.
- Co-op board approval. In a standard co-op purchase, board approval is a condition of sale. If the board turns you down, the deposit is generally returned. Prepare the package carefully, with help from your real estate attorney in Queens.
- Seller or title problems. If the seller cannot deliver clear title or meet another contract obligation, the buyer may cancel and recover the deposit.
When Could a Buyer Lose the Deposit?
- Waiving the mortgage contingency. Waive it, then fail to get a loan, and you have generally given up the basis for getting the deposit back. Get your attorney’s advice before waiving anything to win a bidding war.
- Backing out without a contractual right. Cold feet or a home you like better are not, by themselves, reasons the contract will return your deposit. Once contingencies expire, you are generally obligated to close or forfeit it.
- Missing deadlines or changing loan terms. Applying late, missing documents, or seeking a larger loan than the contingency describes can all put the deposit at risk.
In many New York contracts, the deposit is the seller’s remedy if the buyer defaults — liquidated damages: the seller keeps it and the matter ends. Your signed contract controls your deal.
Checklist Before You Sign
- Confirm the amount, payee, payment form, and deadline with your attorney, in writing.
- Make sure the funds are liquid and available on the contract date.
- Calendar every contingency deadline the day you sign.
- Do not waive a contingency, change lenders, or change loan terms without your attorney’s advice.
- Keep records of every application, lender message, and written notice.
- Review the step-by-step timeline from offer to keys in Queens to see where the deposit fits.
Buying in Queens — a co-op in Jackson Heights, a two-family in Richmond Hill, a condo in Long Island City, or a single-family home in Jamaica Estates, Bayside, or Astoria? Empire Fine Homes can help you prepare for the contract stage. Call 917.554.0546. This is general information, not legal advice; for advice about your purchase, speak with a New York real estate attorney.
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