Earnest money vs. option fee

What's the difference between earnest money and an option fee?

The option fee buys your right to back out during the option period and goes to the seller. Earnest money shows good faith and is held by the title company. It's credited to you at closing, and whether it's refunded if the deal ends depends on the contract terms.

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Duck Brothers Real Estate · TREC Broker #9009651 · Equal Housing Opportunity. Market figures come from MLS listings as of September 25, 2026 and are not a guarantee of value.