how is earnest money paid 
earnest money is usually paid by certified check personal check or a wire transfer into a trust or escrow account that is held by a real estate brokerage legal firm or title company the funds are held in the account until closing when they are applied toward the buyer s down payment and closing costs it s important to note that escrow accounts like any other bank account can earn interest if the earnest funds in the escrow account earn interest of more than 600 the buyer must fill out tax form w 9 with the irs to receive the interest 1different jurisdictions may have different legal circumstances around earnest money for example washington state legislature stipulates slightly different definitions than minnesota statutes 23