Once a seller accepts your offer, three things come up in the same stretch of the purchase: earnest money, the inspection and the appraisal. Each one protects a different part of the deal. This post explains what they are, the Kansas and Missouri rules that apply to them, and the seller disclosures that sit alongside them. If you are just getting started, the buyer guide lays out the full path from pre-approval to closing.
Earnest money
Earnest money is a deposit you make soon after a seller accepts your offer, as a sign that you intend to follow through. It is not handed to the seller. It is held in a broker's trust account or by an escrow agent named in the contract, such as a title company. At closing it usually goes toward your down payment or closing costs, so it is not an extra cost on top of everything else.
The amount is negotiable and is part of the offer we put together. A larger deposit can make an offer stronger when other buyers are interested, but the right number depends on the home and your comfort level. I don't quote a fixed figure, because it varies, but I will help you decide what makes sense for the home you are pursuing.
Where the deposit is held in Kansas and Missouri
Kansas. State law requires every broker to keep a separate trust account, and earnest money received in a transaction must go into it unless all parties with an interest in the funds agree otherwise in writing. A broker cannot take any part of the earnest money as a commission until the sale closes or is terminated, unless all parties agree in writing.
Missouri. The Missouri Real Estate Commission's rules require a broker to deposit earnest money in an escrow or trust account no later than 10 banking days after the last party signs the contract, unless the contract says otherwise.
Contingencies and your deposit
A contingency is a condition in your contract that lets you cancel and recover your earnest money in certain situations, such as a problem found during inspection or an issue with your financing. The Kansas City Regional Association of REALTORS® lists home repairs, environmental concerns, inspections and appraisals among the contingencies an offer can include. As long as you act within the time your contract gives you, your deposit is generally protected. The risk comes from walking away for a reason the contract does not cover. I go over every contingency with you before you sign, so you know what protects you and what does not.
If there is a dispute
In Missouri, if the buyer and seller disagree about who gets the earnest money, the broker keeps it in escrow until both sign a written release or a court case decides it. If neither happens within 60 days of the dispute, the broker may release the money in good faith to one party after giving both 15 days' written notice by certified mail. In Kansas, the trust account statute and your contract govern how the money is released.
The home inspection
After your offer is accepted, you usually have a set number of days, written into the contract, to have the home professionally inspected. An inspector looks at the structure and major systems, such as the roof, foundation, electrical, plumbing, heating and cooling, and gives you a written report on the home's condition. The Kansas City Regional Association of REALTORS® suggests getting both mechanical and structural inspections.
The point of an inspection is information. Older and newer homes alike can have issues that are not obvious during a showing. I'd attend the inspection if you can, or at least go through the report with me.
Radon and lead-based paint
Radon. The EPA recommends fixing a home if the radon level is 4 picocuries per liter or more, and the Kansas Department of Health and Environment notes that testing is the only way to know a home's level. KDHE keeps a list of certified radon measurement and mitigation technicians.
Lead-based paint. For a home built before 1978, federal law requires the seller to give you the EPA lead pamphlet, disclose any known lead-based paint or hazards, share any records or reports, and include a lead warning statement in the contract. You get 10 days to have a lead inspection or risk assessment done, unless you and the seller agree in writing to a different period or you waive it.
After the report
Once you have the results, we go through what matters and what does not. Some findings are minor and expected for a home of its age. Others may be worth raising with the seller. Depending on the report and what your contract allows, we might ask for repairs, ask for a credit, renegotiate, or decide the home is not right for you. My job is to help you separate the serious concerns from the cosmetic ones and respond in a way that fits your goals.
Seller disclosures
Both states put disclosure duties on the seller's agent:
- Kansas requires a seller's agent to disclose to buyers all adverse material facts the agent actually knows, including environmental hazards that the law requires to be disclosed, the physical condition of the property, material defects in the property and material defects in the title.
- Missouri requires a seller's agent to disclose to buyers all adverse material facts the agent actually knows or should have known. The agent does not have to inspect the property independently or verify statements made by the seller or an inspector.
That is why the inspection still matters even when a disclosure statement is provided. Ask for the seller's disclosure statement early, and compare it with what the inspector finds.
The appraisal
If you are financing the purchase, your lender will order an appraisal. An appraiser is an independent professional who estimates the home's value from its condition, features and recent comparable sales nearby. The lender uses it to confirm the home is worth enough to support the loan.
The appraisal mainly protects the lender, but it also gives you an independent read on value. Usually it supports the agreed price and the process moves forward. When it comes in lower than expected, we look at the options, which can include renegotiating, adjusting your financing, covering part of the difference, or cancelling if your contract gives you that right.
Your copy of the appraisal
For a loan secured by a first lien on a home, federal rules require the lender to give you a copy of every appraisal and written valuation promptly when it is completed, or three business days before closing, whichever comes first. Separately, the lender must give you the Closing Disclosure, with your final loan terms and costs, at least three business days before you close.
Kansas and Missouri differences
The core process is similar across the state line, but the contract forms, deadlines and customs can differ between Kansas and Missouri, as the deposit rules above show. Because I am licensed in both states, I can guide you through either one and make sure the paperwork and deadlines for your transaction are handled correctly. The guide to buying across the state line covers more of the differences.
Closing costs and who customarily pays for what can also vary by state and by transaction. For exact figures, your lender and title company are the right sources, and I will make sure you connect with them early. You can estimate a monthly payment with the mortgage calculator as you compare homes on the market.
Contract deadlines
Earnest money, inspections and appraisals all run on deadlines written into your contract, and missing one can affect your protections. I track every date and stay in regular contact during this stretch. The home-buying timeline shows where these steps fall, the first-time buyer guide covers the steps before them, and the blog has more articles on buying.
Contact Tom
Tom Staats is a REALTOR® with Keller Williams Realty Partners, Inc. in Overland Park, licensed in Kansas and Missouri. If you are buying in the Kansas City metro and want to go over earnest money, inspections and appraisals for a specific home, call or text 913-777-4461.
Common questions
Do I lose my earnest money if I back out?
It depends on why you back out and what your contract allows. If you cancel within a contingency the contract gives you, such as inspection or financing, the deposit is usually returned. If you walk away for a reason no contingency covers, the seller may be entitled to it, so I go over these terms with you before you sign.
How soon is earnest money deposited?
In Missouri, a broker must deposit it in an escrow or trust account within 10 banking days after the last party signs the contract, unless the contract says otherwise. In Kansas, the law requires it to go into the broker's trust account unless all parties agree in writing to another arrangement, such as a title company holding it; your contract sets the timing.
Is a home inspection required to buy a home?
It is usually your choice, but your lender or loan program may have its own requirements. An inspection tells you about the home's condition and gives you a window to raise concerns before you are fully committed.
Will I get a copy of the appraisal?
Yes. For a first mortgage on a home, federal rules require the lender to give you a copy of the appraisal promptly when it is done, or three business days before closing, whichever is earlier.
What happens if the appraisal comes in low?
You and the seller have options. You might renegotiate the price, cover part of the gap, change your financing, or in some cases cancel if your contract protects you, and I help you weigh them against the rest of the deal.
Related pages
Sources
- Kansas Office of Revisor of Statutes: K.S.A. 58-3061, trust accounts
- Missouri Secretary of State: 20 CSR 2250-8, Missouri Real Estate Commission business conduct rules, 8.120 and 8.130 (June 30, 2023)
- Kansas City Regional Association of REALTORS®: Buying a home (2026)
- Kansas Office of Revisor of Statutes: K.S.A. 58-30,106, duties of a seller's agent
- Revisor of Missouri: Section 339.730 RSMo, duties of a seller's agent
- U.S. Environmental Protection Agency: Real estate disclosures about potential lead hazards
- U.S. Environmental Protection Agency: What is EPA's action level for radon
- Kansas Department of Health and Environment: Kansas Radon Program (2026)
- eCFR: 12 CFR 1002.14, rules on providing appraisals and other valuations
- Consumer Financial Protection Bureau: What is a Closing Disclosure? (reviewed May 2, 2023)