In Illinois: Can a brokerage force Earnnest or electronic payment for earnest money?
Homebuyers across Chicago and its suburbs are increasingly being told by real estate brokerages that earnest money must be paid through a digital platform such as Earnnest, TrustFunds, or another ACH/EFT service.
These platforms are marketed as secure, fast, and convenient — and for many buyers, they are. But convenience is not the same as legality. And when you’re buying a home, you have the right to know whether a brokerage can actually force you to use one of these systems.
Since there's a lot to know about paying earnest money, you can click on these highlights to learn more. Or keep scrolling to read it all.
What Illinois law says about earnest money
Earnest money is considered escrow money
What this means for you, the buyer
Why do brokerages push electronic earnest money?
Your rights as a buyer
How to push back politely and effectively
Why an ACH might make sense anyway
What if you’re buying a home now?
What Illinois law says about earnest money
Illinois regulates earnest money through the Illinois Real Estate License Act and the Illinois Administrative Code, which define what counts as earnest money and how it must be handled.
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Earnest money is considered escrow money
Escrow money includes “personal checks, cashier’s checks, money orders, cash, or any other forms of legal tender.”
Brokers who accept escrow money must deposit it into a compliant escrow account and follow strict recordkeeping rules.
Illinois law does not limit earnest money to electronic transfers. The law is designed to ensure that any legitimate form of payment is acceptable.
>>Go back to questions
What this means for you, the buyer
A brokerage cannot legally require you to use an EFT/ACH platform as the only method of payment. They may:
>>Go back to questions
Why do brokerages push electronic earnest money?
Even though they can’t require it, many brokerages push ACH/EFT platforms for reasons that make sense from their perspective:
>>Go back to questions
Your rights as a buyer
As a buyer in Illinois, you have the right to:
>>Go back to questions
How to push back politely and effectively
If a brokerage insists you must use any particular ACH platform or electronic payment generally, here are practical ways to respond.
>>Go back to questions
Why an ACH might make sense anyway
Even though you cannot be forced to use an ACH platform, there are situations where it may be beneficial:
>>Go back to questions
What if you’re buying a home now?
If you’re actively shopping for a home and want to avoid conflict with your broker (or their brokerage) over earnest money:
These platforms are marketed as secure, fast, and convenient — and for many buyers, they are. But convenience is not the same as legality. And when you’re buying a home, you have the right to know whether a brokerage can actually force you to use one of these systems.
Since there's a lot to know about paying earnest money, you can click on these highlights to learn more. Or keep scrolling to read it all.
What Illinois law says about earnest money
Earnest money is considered escrow money
What this means for you, the buyer
Why do brokerages push electronic earnest money?
Your rights as a buyer
How to push back politely and effectively
Why an ACH might make sense anyway
What if you’re buying a home now?
What Illinois law says about earnest money
Illinois regulates earnest money through the Illinois Real Estate License Act and the Illinois Administrative Code, which define what counts as earnest money and how it must be handled.
>>Go back to questions
Earnest money is considered escrow money
Escrow money includes “personal checks, cashier’s checks, money orders, cash, or any other forms of legal tender.”
Brokers who accept escrow money must deposit it into a compliant escrow account and follow strict recordkeeping rules.
Illinois law does not limit earnest money to electronic transfers. The law is designed to ensure that any legitimate form of payment is acceptable.
>>Go back to questions
What this means for you, the buyer
A brokerage cannot legally require you to use an EFT/ACH platform as the only method of payment. They may:
- Recommend it
- Strongly prefer it
- Explain why they think it’s safer or faster
>>Go back to questions
Why do brokerages push electronic earnest money?
Even though they can’t require it, many brokerages push ACH/EFT platforms for reasons that make sense from their perspective:
- Reduced administrative burden — No need to track checks or make bank runs.
- Instant verification — Funds are confirmed quickly, reducing delays.
- Lower risk of bounced checks — ACH transfers reduce the chance of insufficient funds.
- Audit trails — Digital platforms create clean records for compliance.
>>Go back to questions
Your rights as a buyer
As a buyer in Illinois, you have the right to:
- Choose any lawful form of earnest money payment
- Have your attorney review the contract before you tender earnest money
- Avoid additional fees associated with third-party payment platforms unless you voluntarily agree to them
- Request that earnest money be held by the seller’s attorney, your attorney, or the title company, not the brokerage.
>>Go back to questions
How to push back politely and effectively
If a brokerage insists you must use any particular ACH platform or electronic payment generally, here are practical ways to respond.
- Point to Illinois law
You can simply say “Illinois escrow regulations allow earnest money to be paid by check or other legal tender. I prefer to use a check.”This is accurate and grounded in the Administrative Code. - Offer a reasonable alternative form of payment
- A personal check
- A cashier’s check
- A wire transfer
If they object, ask:“Is there a legal reason you cannot accept a check, or is this just a preference?” This question reframes the conversation and usually resolves the issue.
3. Suggest an alternate custodian for the earnest money
Most but not all real estate attorneys and title companies are willing and able to hold earnest money. This is especially helpful if:
Most but not all real estate attorneys and title companies are willing and able to hold earnest money. This is especially helpful if:
- You want to avoid platform fees
- You prefer not to share banking information electronically
- You want a neutral third party holding the funds
4. Ask the brokerage to cover any platform fees
If the brokerage insists on using an ACH platform for its convenience, it is reasonable to ask them to pay the associated fee. Many will agree.
>>Go back to questions
Why an ACH might make sense anyway
Even though you cannot be forced to use an ACH platform, there are situations where it may be beneficial:
- You are out of town and cannot deliver a check
- You want instant confirmation of receipt
- You prefer digital recordkeeping
- You want to avoid wire transfer fees
- You are in a competitive bidding situation and want to appear “fast and clean”
>>Go back to questions
What if you’re buying a home now?
If you’re actively shopping for a home and want to avoid conflict with your broker (or their brokerage) over earnest money:
- Bring your attorney into the conversation early
- Clarify earnest money terms before signing the contract
- Push back politely if a brokerage insists on a single payment method
- Consider having your attorney hold the earnest money for maximum neutrality