Earnest money (斡旋金) is a sum the buyer hands to the agent so the agent can take the buyer’s offer to the seller and negotiate. When the seller signs to accept the offer, the money becomes a deposit (定金) and both sides are obliged to sign a sale contract. The question we hear most often from buyers in Taichung is simple: if I pay it, do I get it back?
Three numbers first
- 2 ways to make an offer: earnest money, or the Ministry of the Interior’s model offer letter (要約書).
- At least 3 days of contract review for the offer letter, stated in its preamble.
- 0 government templates for earnest money agreements; each agency writes its own.
(Based on the Ministry of the Interior’s offer letter template announced 26 June 2003 and the Fair Trade Commission’s guidance; updated 20 September 2026.)
What earnest money is, and when it becomes a deposit
Earnest money is paid when you ask an agent to negotiate on your behalf. It is not a deposit yet and it is not part of the price. The Fair Trade Commission defines it as money the buyer hands to the agent “to negotiate the transaction with the seller on the buyer’s behalf”. Once the seller signs to accept, it becomes a deposit and the contract is presumed formed under Civil Code Article 248. Forms labelled “offer guarantee” and similar count as earnest money too: if you have to pay when you sign, it is earnest money; if you do not, it is an offer letter.
How much is reasonable? The law sets no amount
There is no legal rule on the amount; it is agreed between buyer and agent. The amount affects only one thing: how much you lose if you back out after the seller accepts.
Our view: For resale homes around NT$10,000,000 in Taichung, most buyers put down NT$50,000 to NT$100,000. That is our experience, not a statistic. On completion it is folded into the signing payment.
Is it refundable? Four scenarios
There is one dividing line: has the seller signed to accept? Before that, if talks fail, the money comes back in full without interest. After that, it is a deposit and Civil Code Article 249 applies.
| Scenario | What happens to the money | Basis |
|---|---|---|
| 1. Seller does not accept, or the period expires | Refunded in full, no interest | The money was only held by the agent; the seller never received a deposit |
| 2. Buyer wants out before the period expires | Depends on whether the form grants a right of withdrawal; if not, the buyer is bound by the offer until expiry | Civil Code Article 154; each agency’s form differs |
| 3. Buyer backs out after the seller accepts | Converted to a deposit and forfeited to the seller | Civil Code Articles 248 and 249(2) |
| 4. Seller backs out after accepting | Seller returns double (receives NT$100,000, returns NT$200,000) | Civil Code Article 249(3) |
Article 249 applies “unless the parties agree otherwise”, so the form you sign controls. For scenario 2, ask the agent to add one line before you sign: “Before the seller signs to accept, the buyer may withdraw in writing and the earnest money is refunded in full without interest.” If the seller changes any condition and then signs, that counts as a new offer under Civil Code Article 160; until you sign to accept the new terms, no sale exists and the money has not become a deposit.
Earnest money versus the offer letter: the buyer chooses
The two are alternatives and the buyer picks. Point 9 of the Fair Trade Commission’s guidance says that before collecting earnest money, the agent must tell the buyer in writing that the two are alternatives and that the buyer may choose either. Failing to do so, where it affects trading order, breaches Article 25 of the Fair Trade Act.
| Earnest money agreement | Ministry of the Interior offer letter | |
|---|---|---|
| Pay up front? | Yes, on signing | No; nothing until the seller accepts |
| Review period | Per each agency’s form | At least 3 days; you may take it home |
| Withdraw before the seller accepts? | Depends on the form; not guaranteed | Yes; Article 4 grants an express right of withdrawal |
| Cost of backing out after acceptance | Buyer forfeits the deposit; seller returns double | Per the breach terms written in the offer letter |
(Based on the Fair Trade Commission’s guidance as amended 29 December 2015 and the ministry’s offer letter template.) The often-quoted “offer letter breach costs 3% of the price” is a clause agencies add themselves; the ministry’s template contains no penalty percentage.
Which one?
Still comparing two or three homes, or not yet sure of your loan ratio? Use the ministry’s offer letter, which has an express right of withdrawal. Sure about this home and bidding close to market? Either works; earnest money fixes the cost of default in advance. If an agent says “our company does not do offer letters”, that does not comply with the Fair Trade Commission’s guidance. Print the government offer letter yourself and bring it.
Five traps
Earnest money disputes are rarely about stolen money. They are about buyers who thought they could still back out when the deal had already closed.
- Not told you could choose an offer letter. The Fair Trade Commission publishes sample wording for this written notice.
- Signing on the spot after a viewing. You may take the form home and read it first.
- A vague negotiation period. It must say “until [date] at [time]”.
- “The owner has agreed” by phone. The deal exists only when the seller’s own signature and the time appear on the form. A phone call is not acceptance.
- Loan terms left out. Backing out because the loan falls short is a breach unless you wrote in: “If the loan is below [X]% of the price, the buyer may cancel without penalty and the earnest money is refunded in full.”
Checklist before you put down earnest money
Check the property and the price first, then the words on the form.
- You have read and signed for the disclosure statement (不動產說明書).
- The land registry transcript (謄本) shows no seizures or private encumbrances.
- No unnatural death on the premises: see checking for stigmatised property.
- Actual transaction prices in the same building over the past year: bid against completed sales, not asking prices.
- Agent commission agreed in advance. Under Ministry of the Interior rules, buyer and seller combined may not exceed 6% of the price. See agency fees.
- Negotiation period, refund and withdrawal terms written in.
Templates: the government publishes only an offer letter
The Ministry of the Interior has never published an earnest money agreement template. The only official document is the offer letter, Appendix 2 of the model listing agreement (不動產委託銷售契約書範本) announced on 26 June 2003. In the PDF of that model agreement the offer letter is on pages 12 to 14, and a Word version is available from the ministry’s real estate information platform, which also lists all contract templates. The Fair Trade Commission publishes sample wording for the written notice about choosing between the two. Earnest money templates found online are private drafts, and we do not provide one.
Key clauses of the ministry’s offer letter
| Clause | Content |
|---|---|
| Preamble: review right | The buyer may take the offer letter and attachments (disclosure statement, copy of sale terms) home; review period at least 3 days |
| Article 3: binding effect | The seller must personally record the acceptance time and sign, and deliver it to the buyer; both then must sign the sale contract. A seller who accepts with changed terms is treated as rejecting and making a new offer |
| Article 4: withdrawal | The buyer may withdraw within the offer period, unless the seller’s acceptance has already been delivered; effective by registered letter or written delivery |
| Articles 2, 5, 6 | Total price and four-stage payment terms; sale contract to be signed within an agreed number of days after acceptance; four copies |
| Article 7: validity | The offer period is written to the date and hour; if the seller changes terms, the original offer letter lapses |
(From the ministry’s Appendix 2 text; updated 20 September 2026.)
FAQ
What is earnest money?
Money the buyer hands to the agent so the agent can negotiate the buyer’s offer with the seller. When the seller signs to accept, it becomes a deposit and both sides must sign a sale contract.
Can I get it back?
Before the seller accepts, yes. After the seller accepts, no: it is a deposit under Civil Code Article 249, a buyer who backs out cannot reclaim it, and a seller who backs out must return double.
Earnest money or offer letter?
The difference is paying up front. Earnest money is paid on signing; the offer letter costs nothing, carries a review period of at least 3 days and an express right of withdrawal. The agent must tell you in writing that you may choose either.
Is there an official earnest money template?
No. Each agency drafts its own. The government’s only template is the Ministry of the Interior’s offer letter, available on its real estate information platform.
The form is the risk, not the money
Three things before you sign: check the property, base your bid on actual transaction prices, and make sure the form states the expiry time, the right of withdrawal and the loan condition. For how this fits with the other documents, see the documents you sign and the buying process. Unsure whether a form is safe to sign? Contact us.