15 May

5.15.25 Crash Course on Earnest Money Deposits

5.15.25 Crash Course on Earnest Money Deposits

Thursday, May 15, 2025 (10:30 AM to 11:30 AM)
1 Hr Real Estate Contracts CE Hours
Hillsdale Conference Center - Ballroom, Charlottesville, Virginia

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This class is in person participation only.

Understanding earnest money deposits is an essential part of any real estate transaction. From my presentation, I am hoping you understand where Virginia stands in regards to laws surrounding earnest money deposits, where to find earnest money deposits on the VAR contract, and where earnest money deposits are also subjects in other real estate transactions.

An earnest money deposit is not a security deposit. The money shows the eagerness of the buyer for the potential transaction. As I have laid out in this presentation, sometimes the buyer is able to receive the money back, but usually only if there is a clear contingency that specifically allows the return of the EMD. When in doubt, it is important to reference the contract to learn about the particular EMD required for a specific closing.

In regards to the VAR contract, when there is a clear contingency of the contract, the EMD is able to be returned to the potential buyer. The contract does not say what happens to the EMD when there is a legal issue or a breach of contract. Lastly, the amount of money noted on the contract for the EMD deposit matters. In some cases it can be foolish to be too earnest and place more money, while in other cases it is a bad idea to
put too little money.

Virginia codes and Administrative Regulations guide us about the EMD when the contract does not. Additionally, Virginia case laws can also guide us about the EMD.  Looking at contracts, codes, and case law can help point us in the right direction if a question were to arise about the earnest money deposit.

Hillsdale Conference Center - Ballroom - Ballroom
Hillsdale Conference Center - Ballroom (Ballroom)
550 Hillsdale Dr.
Charlottesville, VA 22901

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Barnhardt, Addison
Addison was born in Charlottesville and grew up in Woodberry Forest, VA. He graduated from St. Anne’s-Belfield in 2001 and went Vanderbilt University where he majored in Human and Organizational Development and minored in Film Studies. Addison attended Vermont Law School and earned a J.D., cum laude, and a Masters in Environmental Law Policy, magna cum laude, focusing in land use law.

Addison lives in Ivy with his wife Willa and children.

Association & Membership:
  • Virginia State Bar, Real Property Section
  • Charlottesville Albemarle Bar Association, Real Property Section
  • Board of Zoning Appeals, City of Charlottesville
  • Charlottesville Albemarle Airport Commission, Chairman
  • Thomas Jefferson Inns of Court, Secretary/Treasurer (2014-2018)
  • Building Code Board of Appeals, City of Charlottesville (2012-2016)

Widhalm, Pat
Pat is President and Principal Broker of Real Estate III in Charlottesville, VA. She has taught real estate courses throughout Virginia for almost a half-century. Her competencies include risk management, compliance, legal issues, license law, agency law, contract writing, transaction management, and fair housing. She is a certified ethics and professional standards Instructor and an NAR REALTOR® Emerita.

Cancellation requests (written or phoned) will be accepted through 5:00 p.m. two business days preceding each class. All paid tuition other than the $10 non-refundable, non-transferable to another person deposit will be refunded. No refunds will be given for cancellations made after the close of business on that day. (Requests for refund consideration due to extenuating circumstances must be received by CAAR in writing within 15 days after class start date).