<div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div>Craig, the parties can agree to earnest money in excess of 5%. They simply need to include language sufficient to support the liquidated damages provision, as set forth in case law. I generally use something like:</div><div><br></div><div>"If Buyer were to breach this Agreement, Seller’s losses would be difficult or impossible to ascertain. The earnest money constitutes “liquidated damages” and is a reasonable estimate of Seller’s losses if Buyer breaches this Agreement. As Seller’s only remedy upon Buyer’s breach, Buyer will forfeit the Earnest Money, including that portion in excess of 5% of the Purchase Price."</div><div><br></div><div>If anyone has experience in handling an EM dispute of >5%, and whether forfeiture was enforceable, please share!</div><div><br></div><div>Craig</div><div><div dir="ltr" class="gmail_signature"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div style="font-size:12.8px">Craig Blackmon, <a href="https://www.mywsba.org/PersonifyEbusiness/LegalDirectory/LegalProfile.aspx?Usr_ID=000000029240" target="_blank">Attorney at Law</a></div><div style="font-size:12.8px"><span style="color:rgb(33,33,33)"><font face="arial, helvetica, sans-serif" size="2">92 Lenora St. #13, </font></span><span style="font-family:arial,helvetica,sans-serif;font-size:small;color:rgb(33,33,33)">Seattle WA 98121 </span></div><div style="font-size:12.8px"><span style="color:rgb(33,33,33)"><font face="arial, helvetica, sans-serif" size="2">Office/Cell: (206) 369-5949</font></span> </div><div style="font-size:12.8px">On the blog: <a href="https://seattlepropertylawyer.com/blog/quitclaim-deed-explained" target="_blank">Changes to Title and the QCD</a></div><div style="font-size:12.8px"><a href="https://seattlepropertylawyer.com/" target="_blank"><img style="font-size:small" width="96" height="60" src="https://ci3.googleusercontent.com/mail-sig/AIorK4yAS3LbigaeQ7XjeX_jBFLC1xkGA4lhF3hRITg40apDzIx3WWSC-yKZowxra-M6dhcfA8lC3xQ"></a> <a href="https://www.fsbolawyers.org/" target="_blank"><img width="96" height="92" src="https://ci3.googleusercontent.com/mail-sig/AIorK4wb7RP8yX-nieDebz-qxj-lDuz4U1vb4JaUimepQmmYEjbAHyaH1ZbnST10vrkMatVaysevEMU"></a></div><div style="font-size:12.8px">CONFIDENTIALITY NOTICE: This communication is a private, confidential electronic communication encompassed by 18 USC 2510. It is for the sole use of the intended recipient and receipt by anyone other than the intended recipient does not constitute a loss of its confidential or privileged nature. Any review or distribution by others is strictly prohibited. If you are not the intended recipient please inform the sender and destroy all copies.<br></div><div style="font-size:12.8px"><div style="margin:8px 0px 0px;padding:0px;font-family:Roboto,RobotoDraft,Helvetica,Arial,sans-serif"><div><div></div></div></div><div style="font-family:Roboto,RobotoDraft,Helvetica,Arial,sans-serif"></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div><br></div></div><br><div class="gmail_quote"><div dir="ltr" class="gmail_attr">On Mon, Oct 27, 2025 at 8:14 PM Tom Westbrook <<a href="mailto:tjw@w3net.net" target="_blank">tjw@w3net.net</a>> wrote:<br></div><blockquote class="gmail_quote" style="margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding-left:1ex">
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Hey Craig, totally spit balling here, but can’t you have a separate earnest money agreement referenced in the P&SA that provides how the parties agree to handle the earnest money irregardless of statutory or case law, etc?</div>
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Best Regards, Tom Westbrook </div>
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<div id="m_8014670184113739799m_-6730897695292674850divRplyFwdMsg" dir="ltr"><font face="Calibri, sans-serif" style="font-size:11pt" color="#000000"><b>From:</b> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com" target="_blank">wsbarp-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbarp-bounces@lists.wsbarppt.com" target="_blank">wsbarp-bounces@lists.wsbarppt.com</a>> on behalf of Craig Gourley <<a href="mailto:craig@glgmail.com" target="_blank">craig@glgmail.com</a>><br>
<b>Sent:</b> Monday, October 27, 2025 5:34:55 PM<br>
<b>To:</b> WSBA Real Property Listserv <<a href="mailto:wsbarp@lists.wsbarppt.com" target="_blank">wsbarp@lists.wsbarppt.com</a>><br>
<b>Subject:</b> [WSBARP] limit on Earnest Money.</font>
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<p><span style="font-size:11pt">Listmates, I understand the Earnest Money limitations contained in RCW 64. 04.005 and that earnest money outside of the 5% is controlled by case law. I have a very large developer that is offering my
client substantially more than the 5% as Earnest money and they have offered to waive the statutory limit. Typically I would just restructure it as an partially an option payment but the developer is pushing back. I thought I would consult the collective
before diving into case law. Any thoughts? Thanks!</span></p>
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<p><b><span style="font-size:11pt;font-family:Calibri,sans-serif">GOURLEY LAW GROUP</span></b><span style="font-size:11pt;font-family:Calibri,sans-serif"></span></p>
<p><b><span style="font-size:11pt;font-family:Calibri,sans-serif">THE EXCHANGE CONNECTION</span></b><span style="font-size:11pt;font-family:Calibri,sans-serif"></span></p>
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