Thinking about making an offer on a Jekyll Island home and wondering how earnest money works? You are not alone. This good‑faith deposit can strengthen your offer and protect you during due diligence, but only if you understand the timelines and contingencies in your contract.
In this guide, you’ll learn how much earnest money buyers typically put down on Jekyll Island, when and how to deliver it, and which contingencies protect your deposit. You’ll also get a practical timeline and coastal-specific tips for the Golden Isles. Let’s dive in.
Earnest money basics in Georgia
Earnest money is a buyer’s deposit that shows serious intent to purchase after your offer is accepted. The deposit is held in escrow, then credited to your down payment or closing costs at closing if the sale goes through.
Your purchase contract controls everything about earnest money. It sets the amount, who holds it, timelines, contingencies, and what happens if either party defaults. On Jekyll Island and across Glynn County, local customs can influence how much you offer, but the signed contract is the final word.
Typical amounts on Jekyll Island
As a starting point, buyers often offer about 1% to 3% of the purchase price as earnest money. In competitive coastal or vacation markets like the Golden Isles, deposits may be higher to stand out.
For some condos or lower-priced homes, you may see flat deposits such as $1,000 to $5,000. The right number depends on price, competition, and your comfort level. Discuss strategy before you write the offer so the deposit supports your goals without adding unnecessary risk.
When you pay and who holds it
Most Georgia contracts set a short window to deliver earnest money, usually 24 to 72 hours after both parties sign. Your contract will list the exact deadline.
A neutral escrow holder, such as a title company or closing attorney, commonly holds the funds in Georgia. Some contracts name a broker as the escrow holder. Always verify wiring instructions directly and get a written receipt showing the amount, date received, and contract reference.
Contingencies that protect your deposit
Well-structured contingencies give you time to investigate and can make your earnest money refundable if you terminate properly and on time.
- Inspection and due diligence. You typically get a defined period, often 7 to 14 days, to inspect and request repairs or cancel as allowed by the contract. Use written notice and follow the terms exactly.
- Financing. If you cannot secure loan approval within the contract’s financing timeline, you can usually terminate and receive a refund, provided you give timely notice.
- Appraisal. If the appraisal is below the purchase price, your options include negotiating, bringing extra cash, or terminating if your contract allows.
- Title. You will review a title commitment. Significant defects or liens that cannot be resolved can be grounds for termination under the contract.
- HOA and community documents. For properties with associations, you should have time to review budgets, rules, and restrictions. Adverse findings can support termination if your contract provides for it.
- Coastal and island items. On Jekyll Island, consider surveys, elevation certificates, flood zone and insurance availability, and any Jekyll Island Authority restrictions. If you negotiated these protections, they can preserve refund rights when used properly and on time.
Remember, refunds depend on following the contract’s notice requirements. Keep proof of delivery and track every deadline.
Local coastal checks that matter
Buying on Jekyll Island adds a few key steps during due diligence:
- Flood and insurance. Confirm flood zone status, obtain an elevation certificate if needed, and get estimates for homeowners, wind, and flood insurance. Insurance availability and cost can affect financing and your overall budget.
- Jekyll Island Authority and recorded restrictions. Some properties are subject to island rules, conservation easements, or other covenants. Review any JIA requirements and recorded documents that could affect property use, renovations, or rentals.
- HOA and rental policies. Many communities in the Golden Isles have specific rental rules. Verify any limits, fees, and approval processes to ensure they align with your plans.
- Seasonal timing. Hurricane season can impact scheduling for inspections, insurance underwriting, and closing. Build buffer time into contingency periods when possible.
Your step-by-step timeline
Use this high-level checklist to keep the process smooth and your deposit protected:
Before you write the offer
- Align on deposit strategy: amount, timing, and whether to increase for competitiveness.
- Confirm the escrow holder named in the offer and how you will deliver funds.
Right after acceptance
- Deliver earnest money by the contract deadline and get a written receipt.
- Calendar your due diligence, financing, and appraisal dates.
During due diligence
- Schedule inspections: general, pest, and any coastal/structural needs such as seawalls or piers.
- Order title and survey; review for easements, encroachments, and restrictions.
- Verify flood zone, obtain an elevation certificate if needed, and collect insurance quotes.
- Review HOA, JIA, and recorded covenants for use, rental, and improvement rules.
If you need to terminate
- Follow the contract’s exact notice method and deadline for the applicable contingency.
- Keep proof of delivery and request written confirmation from escrow regarding the release.
At closing
- Confirm your earnest money shows as a buyer credit on the closing statement.
- Keep final receipts and copies of disbursements for your records.
Common mistakes to avoid
- Sending funds late or to the wrong place. Verify wiring instructions with the named escrow holder and deliver on time.
- Missing a contingency deadline. Even one day late can affect refund rights.
- Relying on verbal approvals. Use written notices and keep copies.
- Skipping flood and insurance checks. Coastal risk and premiums can change your numbers.
- Assuming rental or renovation plans are allowed. Confirm HOA, JIA, and recorded rules during due diligence.
If a dispute happens
If the buyer and seller disagree about who gets the earnest money, the escrow holder typically keeps the funds in trust until both parties sign a mutual release or a court orders disbursement. Many contracts outline a path for dispute resolution.
If a seller claims default, contracts may allow the seller to keep earnest money as liquidated damages or pursue other remedies. Engage your agent and consider consulting a local real estate attorney if a dispute arises. Keep all documents, receipts, and notices organized.
Your Jekyll Island advantage
A clear earnest money plan helps you make a competitive offer while protecting your interests on the coast. With the right contingencies, timely notices, and local due diligence, you can move forward with confidence from offer to closing.
If you are weighing an offer on Jekyll Island or elsewhere in the Golden Isles, let’s talk through deposit strategy, timelines, and coastal checks that fit your plans. Reach out to Christal Kuchar to schedule your consultation.
FAQs
How much earnest money is typical on Jekyll Island?
- Many buyers start around 1% to 3% of the purchase price, with higher deposits common in competitive coastal situations.
Is earnest money refundable in Georgia home purchases?
- Yes, if you terminate within the contract’s contingency periods using the required written notice; otherwise, the seller may be entitled to keep it per the contract.
Who should hold earnest money in a Jekyll Island sale?
- A neutral escrow holder such as a title company or closing attorney is common, though some contracts name a broker as the holder.
What coastal issues could impact my earnest money refund?
- Insurance availability and cost, flood zone findings, elevation certificate results, storm damage, or island restrictions can matter if you negotiated relevant contingencies and act on time.
How fast do I need to deliver earnest money after acceptance?
- Most contracts require delivery within 24 to 72 hours of mutual acceptance, but your specific contract controls the deadline.
What if the appraisal comes in low on Jekyll Island?
- You can negotiate with the seller, bring additional cash, or terminate if your contract includes an appraisal contingency within the allowed time.
Can my earnest money be used for closing costs?
- Yes, at closing it typically appears as a credit applied to your down payment and/or closing costs.
