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Washington · RCW 18.85.285Washington earnest money: next-banking-day deposits, direct delivery to escrow and disputed funds

Brokers deposit all funds into the firm's trust bank account the next banking day after receipt, unless the purchase and sale agreement provides for deferred deposit or delivery – then they deposit or deliver promptly as the agreement says (RCW 18.85.285(7)). A firm needn't keep a trust account for a deal whose agreement tells the broker to deliver the earnest money check directly to a named closing agent or to the seller (§18.85.285(6)). When a firm holds earnest money it keeps a pooled interest-bearing trust account whose interest goes to the state's housing trust fund and real estate education account (§18.85.285(8)). If more than one party claims the funds, the designated broker or delegate promptly notifies all contracting parties in writing of its intent to disburse – with the parties' names and addresses, the amount, who gets it and a disbursement date no later than 30 consecutive days after the notice (§18.85.285(9)). Brokers submit complete transaction copies to the firm, and the designated broker keeps the purchase and sale agreement, earnest money receipt and an itemization of receipts and disbursements; signed agreements are delivered to all signers within a reasonable time (§18.85.285(1), (3)).

The rules

  1. 1. Next banking day (§18.85.285(7))

    Into the firm's trust account, unless the agreement defers deposit or delivery.

  2. 2. Direct to escrow (§18.85.285(6))

    No trust account needed if the agreement sends the check to a named closing agent or the seller.

  3. 3. Disputed funds (§18.85.285(9))

    Written notice to all parties; disbursement no later than 30 days after the notice.

  4. 4. Records (§18.85.285(1))

    Agreement, earnest money receipt and an itemization of receipts and disbursements.

What the TC can do

  • Read the purchase and sale agreement for where the earnest money goes and when.
  • Get the receipt from the firm's trust account or the closing agent into the file.
  • If the deal fails and both sides claim the money, calendar the broker's 30-day disbursement date.

Questions about Washington earnest money

When must a Washington broker deposit earnest money?

The next banking day after receipt, unless the purchase and sale agreement provides for deferred deposit or delivery (RCW 18.85.285(7)).

What happens when both parties claim Washington earnest money?

The designated broker promptly gives all contracting parties written notice of its intent to disburse, with a disbursement date no later than 30 days after the notice (§18.85.285(9)).

Related guides

Track the earnest money deposit and any disbursement notice as tasks in ClosingCode, with an owner and a due date.

Start free trial

Source: Revised Code of Washington 18.85.285 (app.leg.wa.gov, read October 26, 2026).

General information, not legal advice. ClosingCode is software; it is not a law firm or brokerage. This guide is not a substitute for the advice or services of an attorney.