Maryland’s New Earnest Money Deposit Law: What Calvert County Buyers and Sellers Need to Know

By Dawn Riley, Associate Broker, Realtor, Master Certified Negotiator and Pricing Strategy Advisor | Published August 4, 2026

Beginning October 1, 2026, Maryland expands its expedited earnest money procedure beyond a narrow set of contingencies. The deadlines are short, and the contract still controls whether a termination was proper.

What the new law changes

SB 691 expands the statutory expedited return process to a purchaser who terminates a residential contract under a written contingency. After receiving the purchaser’s written request for return of the trust money, the seller generally has 10 days to file an action or request mediation. If the seller does neither, the trust-money holder must return the deposit within five days after that response period ends.

What the law does not do

The law does not declare that every buyer who asks for a deposit is entitled to it. The buyer must have exercised a valid contractual right. A disputed notice, missed deadline or unmet contingency condition can still create a real dispute.

Why this matters in Calvert County

Calvert County transactions often involve septic, well, waterfront, appraisal, financing, HOA and property-condition issues. A contingency must be written clearly enough that everyone can tell whether it was satisfied, waived or timely exercised.

A practical strategy for buyers and sellers

Buyers should deliver notices exactly as the contract requires and preserve proof. Sellers should send a disputed request to their broker and Maryland attorney immediately. Brokers and escrow holders need deadline tracking, neutral communications and careful trust-account procedures.

The negotiation point

A deposit dispute should not become leverage divorced from the contract. My focus is the language signed by the parties, the evidence, and the next deadline. That protects the client and keeps emotion from replacing analysis.

The bottom line

This law deserves attention, but it should not be overstated. My role is to identify the issue early, verify the controlling information and strategically position my client with clear deadlines and documented facts.