Earnest money is evidence, not an element
Earnest money evidences good faith and is held in trust by the broker, attorney or escrow agent. It is not an element of a valid contract — the consideration is the parties' mutual promises. The most common error is calling it essential and the contract void without it.
There is no legal minimum, so "at least one percent of the price" treats a custom as a rule; and the money never belongs to the listing broker on acceptance. Trust funds go into the broker's custody as soon as practicably possible and are disbursed only as GREC Rule 520-1-.08 allows.
The five-banking-day deposit deadline
Georgia rule. GAR F201 requires the Holder to deposit earnest money not later than five banking days after the Binding Agreement Date, or five banking days after actual receipt.
Worked example. Binding Agreement Date Monday, June 1. Banking days are Monday through Friday excluding federal holidays, so count June 2, 3, 4, 5 and 8: the deadline is Monday, June 8.
Wednesday June 3 counts two days. Friday June 5 counts calendar days and misses that the fifth banking day lands the following Monday. June 15 adds the separate three-banking-day cure period for a bounced check.
Who the closing attorney represents
Georgia rule. Under GAR F201 paragraph B.6, where the buyer does not obtain mortgage financing the closing attorney represents the buyer; otherwise it represents the lender. If the facts recite financing, the answer is the lender — naming the buyer states the all-cash rule, which is the trap. The attorney never represents the seller, and the form creates no dual representation.
Addendum or amendment
An addendum is an addition attached at signing that does not modify substantial terms; an amendment is a later signed change to substantial terms. GAR exhibits, such as financing or lead-based paint, are addenda; forms changing the sales price or closing date are amendments. Both may touch price or dates, so splitting them by subject invents a distinction. Neither may be oral, and recording belongs to deeds and bonds for title.