# Earnest Money, Option Periods & Timelines
## Earnest money
A good-faith deposit held in escrow. During due diligence it's usually **refundable**; after that it often "goes hard" (**non-refundable**) — so know exactly when that switch flips.
## Option agreements
Instead of a straight purchase, developers often use an **option**: you pay the seller a fee for the **exclusive right to buy** within a period, while you pursue entitlements. If the project works, you exercise the option and close; if not, you walk, losing only the option fee.
## Build your timeline backward
Map every deadline against the closing date:
- Feasibility period end
- Financing commitment
- Entitlement milestones (hearings, approvals)
- Deposit "hard" dates and extension deadlines
Missing a date can cost you your deposit or the deal. Calendar everything and track it like a schedule.
**Takeaway:** Know exactly when your deposit goes hard, and calendar every deadline backward from closing.
> *Educational content — not legal, engineering, or financial advice. Requirements vary by jurisdiction; always confirm with the local authority and your professional team.*
