Earnest Money in Portland, Oregon: What SellersNeed to Know
How Does Earnest Money Work for Portland Home Sellers in Oregon? Earnest money in Oregon is a good-faith deposit the buyer pays when their offer is accepted — typically 1–3% of the purchase price in Portland, deposited with a title company within three business days of contract acceptance. As the seller, you keep the deposit as liquidated damages if the buyer walks away without a valid contingency. If the buyer terminates under a protected contingency — inspection, financing, or appraisal — the money goes back to them. Disputed deposits stay frozen in escrow until both parties agree in writing or an arbitrator decides, which is why the size of the deposit, the contingency terms, and the deadlines all matter before you accept any offer. By Pascha Cain, Real Estate Broker | June 18, 2026 When an offer comes in on your Portland home, the first number everyone looks at is the price. The second should be the earnest money deposit. Most sellers glance at it and move on. That’s a mistake. The earnest money deposit is the clearest signal in the offer of how committed the buyer actually is — and it’s the main financial protection you have if the deal falls apart. Understanding how it works in Oregon is essential before you sign a single counteroffer. Here’s what you need to know What Is Earnest Money and How Much Is Normal in Portland? Earnest money is a good-faith deposit the buyer submits when their offer is accepted. It signals commitment. Without it, a buyer could tie up your property for 30–45 days, prevent you from taking other offers, and walk away with no financial consequence. The deposit creates a real cost for walking. In Portland, earnest money typically runs 1%–3% of the purchase price. On a $750,000 home, that’s $7,500 to $22,500. On a $1.5 million home, it’s $15,000 to $45,000. In competitive situations — when buyers are serious, when the home is priced right, or when there are multiple offers on the table — it’s not uncommon to see deposits of 2%–5%. Cash buyers sometimes offer 10% or more to stand out from financed buyers. The amount is negotiable. If an offer comes in with a deposit that feels low relative to the price, you can counter with a higher deposit. A buyer who hesitates at that ask is telling you something important about how committed they are. Oregon law doesn’t mandate a specific minimum. But it does govern what happens to it — and that’s where things get more nuanced than most sellers expect. Who Holds It and When Does It Arrive? Oregon is a title company state. That means your home sale closes through a title and escrow company — not through attorneys, as in some other states. The earnest money goes directly to that title company, where it’s held in trust under ORS 86.705 until the transaction closes or is formally terminated. Under standard OREF (Oregon Real Estate Forms) contract terms, the buyer is required to deposit the funds within three business days of contract acceptance. If they miss that window, they may be in breach of the agreement — which gives you options. Your listing agent should confirm the deposit hit escrow within the required timeframe. This is one of the administrative details that can easily slip through the cracks, and missing it has real consequences. Once the funds are in escrow, they stay there. The title company won’t release them based on one party’s request alone. When You Get to Keep the Earnest Money This is the question sellers care most about — and the one that’s most misunderstood. If a buyer walks away without a valid contractual reason, the earnest money is yours. Oregon treats this as “liquidated damages” — a pre-negotiated sum that compensates you for your lost time, carrying costs, and the opportunity cost of taking your home off the market. You don’t have to prove specific damages. If the buyer had no right to terminate and they terminated anyway, you keep the deposit. A few important limits, though. First, Oregon courts will not enforce liquidated damages they consider a penalty. The amount has to represent a reasonable pre-estimate of your actual losses, not a punitive sum. This is one of the reasons “nonrefundable” earnest money clauses don’t always work the way seller think they will. Inserting “this deposit is nonrefundable” in a counteroffer sounds protective, but if a court finds the amount grossly disproportionate to your actual harm, the clause may not hold. Work with an agent who understands this nuance before you negotiate those terms. Second, the seller’s remedy under the OREF Sale Agreement is typically limited to the earnest money. That means if a buyer walks without cause, you keep the deposit — but you generally cannot also sue them for the difference between what they offered and what you ultimately sold for. The deposit is the trade. Make sure it’s sized appropriately before you accept. The Three Contingencies That Can Override You The OREF Sale Agreement gives buyers protected exit points called contingencies. If a buyer exercises a contingency within the required window and follows the proper written notice procedure, they get their earnest money back. No argument, no dispute. The three most common: Inspection contingency. Under OREF default terms, the buyer has 10 business days from contract acceptance to conduct inspections and notify you of any disapproval. If they disapprove and provide written notice within that window, the deal terminates and the deposit is returned. If they don’t act within 10 business days — even if they meant to — the contingency is automatically waived. The clock runs regardless of whether anyone is paying attention. This is worth understanding from both directions. A buyer who misses the inspection deadline has effectively waived their right to terminate on that basis. Their deposit is now more exposed. You and your agent should always know exactly when each deadline expires. If you want more detail on how