Kansas · Earnest moneyKansas earnest money: the broker's trust account and who can release it

Each Kansas broker, unless exempt, keeps a separate trust account in the broker's or firm's name with an insured bank, savings and loan or credit union in Kansas – or in an adjoining state with the commission's written permission – and all down payments, earnest money deposits and other trust funds received in a real estate transaction by the broker or its associate brokers and salespersons go into it unless everyone with an interest agrees otherwise in writing. The broker can't keep interest on the account without everyone's written consent, and isn't entitled to any part of the earnest money as commission until the transaction is consummated or terminated, unless all parties agree in writing (K.S.A. 58-3061(a), (d)). After an offer is accepted and the earnest money is deposited, it may be disbursed only on the written authorization of buyer and seller, under a court order, or when the transaction closes as agreed (58-3061(g)). The parties may agree in the contract that a party's failure to respond in writing within seven days after receiving a certified letter from the broker, or to demand the deposit in writing within 30 days after notice of cancellation, is consent to the distribution suggested in the letter or demanded by the other party (58-3061(h)).