Okay, so I understand that I submit a check or copy of a check to serve as my Earnest Money Deposit at the time I submit my initial offer.  At what point does that EMD become a "cashable" check?  In other words, if my offer is not accepted, and there is a counter-offer.  I'm not obligated to counter the counter.  I get my check back, right?

On the other hand, if my offer is accepted, am I obligated to enter into escrow?  What if, between the time I submit my offer and the time the seller gets back to me, I see something else I want and decide to back out?

The bottom line of my question: at what point in the process do I forfeit my EMD?

Hello, 

Your earnest money deposit becomes “cashable” once the buyer and seller have reached mutual acceptance and escrow is opened.  If within the Buyers contingency period (typically the first 17 days of escrow), a Buyer gives written notice of cancellation, Buyer and Seller agree to sign mutual instructions to cancel the sale and escrow and release the Buyer’s deposit, less any fees incurred by the Buyer. If the Buyer decided to cancel after the Buyer removed contingencies in writing, this is when your deposit may not be returned. 

What happens in the case of a short sale offer where the buyer is waiting for approval from the lender?  Now day, that takes months.  Can you rescind the offer and get back your EMD? There is no escrow yet, correct? 

Also, what is the legal minimum EMD required? 

Sorry to tag onto your original question LookinginSD...but I was wondering about deposits myself.

Thanks