P&S Deposit
Making your larger escrow deposit at P&S signing
At the Purchase & Sale signing, you'll make your larger escrow deposit—typically bringing the total to 5% of the purchase price. This deposit demonstrates your commitment and is at risk if you back out without a valid contingency.
Calculating Your P&S Deposit
Example: For a $500,000 home, 5% is $25,000. If you put $2,000 down with your offer, you'll owe $23,000 at P&S signing.
Where to Send the P&S Deposit
The P&S deposit is typically sent to:
- •The listing broker's escrow account – Most common
- •Your closing attorney's IOLTA account – Less common
- •The seller's attorney's escrow account – Less common
Payment Methods
Wire Fraud Alert
Wire fraud is increasingly common in real estate. Scammers hack email accounts and send fake wiring instructions. Always verify wire instructions by phone using a number you know is legitimate—never use the number in the email.
Your bank may require 24-48 hours notice for large wire transfers, so plan ahead.
This Deposit Is at Risk
Unlike the initial deposit which may be refundable during the inspection period, the P&S deposit is typically at risk after the P&S is signed. If you back out without a valid contingency (like mortgage denial), the seller may be entitled to keep your deposit as damages.