Usually, buyers pay earnest money to a third party, such as a title company or escrow agent, to hold in until closing. Depositing the money with an independent party helps to ensure that the funds are kept in a secure, neutral location until they are needed.
When you're ready to pay the earnest money, follow the instructions provided in the sales contract. The instructions may involve writing a check or making a wire transfer to the designated escrow agent.
In and around Chicago, you pay earnest money after signing the real estate sales contract. Most buyers make a personal check payable to the selling agent's real estate company. Give the check to your agent, who delivers it to the selling agent's company. They hold it in escrow for safekeeping.
On the other hand, in Florida, you give the earnest money to the title company handling the closing.
Sellers don't receive your earnest money directly. Instead, the title company or settlement agent applied it towards the home's purchase at closing.