Virginia · Va. Code §54.1-2108.2Virginia earnest money: the five-banking-day deposit and how a broker releases it when a deal fails

When a Virginia purchase contract is ratified, an earnest money deposit the firm will hold goes into its escrow account by the end of the fifth business banking day after ratification, unless the principals agree otherwise in writing, and stays there until the transaction closes or terminates; a deposit to be held by an outside escrow agent named in the contract is delivered to that agent by the end of the fifth business banking day after it's received (Va. Code §54.1-2108.2(1)–(2)). If the deal doesn't close, the broker holds the funds until all principals agree in writing, a court orders disbursement, the funds are interpleaded into court, or the broker releases them to the principal entitled under the clear and explicit terms of the contract – optionally after a written notice that release will happen unless the other principal protests in writing within 15 calendar days (§54.1-2108.2(3)). Notice goes by the contract's method or by hand, mail with proof, electronic means with proof, or overnight delivery; the broker needn't decide who is entitled beyond the contract's clear terms, and a broker who complies is immune from liability to the parties (§54.1-2108.2(3)). The broker may also interplead disputed or unclaimed funds under §16.1-77 (§54.1-2108.2(4)).