It should be timely but I know some companies have complicated bookkeeping departments and it takes time to get to the right person. What does the contract say?

It depends who is holding it and what kind of check it was. If it was a personal check I see how a company may hold it a bit longer just to make sure it is all cleared.

In Colorado, they have five days to return the EM.

It depends on the type of the deposit and who is holding it.  We often hold escrow money and if we get a personal check for an offer that cancels 3 days later, we are going to wait at least 10 business days from the date of deposit before we issue a refund check.

What does your state and your broker say?

Well, the seller doesn't hold EM--one of the brokerages or an attorney holds it. If it isn't paid promptly after everyone has signed off on the return of EM, it's not typically the seller's fault.

We don't have EM in Ontario.  However, deposits made to a brokerage are generally not refunded until a mutual release is signed by all applicable parties or a relevant court order directing that the funds are to released.  There may also be other issues to consider.

Jack - I am not sure what the exact rules are here in AZ, but 5 business days does not seem that unreasonable.

I re-list is BOM back on the market immediately upon notice that they are canceling.  We use "subject to cancellation of previous of escrow" in California.  Both parties need to sign the cancellation before escrow is allowed to return the check.  The seller likes to punish the buyer and delay signing it at times.  The Earnest Money should be returned directly to the buyer immediately upon receipt of cancellation instructions being signed by all parties to the transaction.

I think sellers should be able to come back on the market after the sales contract is canceled...as long as there isn't an EM dispute. The return can take a few days. It would also depend on whether the buyer is local or not. In my area we have a lot of out of the area buyers. 

I hold it until I know it has cleared my bank.  If it is an out of state personal check that's 10 days.  If it was wired it is immediate. If it was drawn on a local bank and they will verify it's cleared I will issue sooner.

5 days is a bit too fast.  The escrow agent does have more than 1 customer at a time.  Wait your turn.

Every state is different. We expect that any escrow check must clear before a return can be facilitated and that is also dependent on the parties to the contract all agreeing to the return. 

When KW receives the termination the buyer can get there EM check refund within 2 days.

Banks hold your money, why not brokers, 5 days is not a big deal.

Jack Lewitz When all parties have signed off on the release form.

In our area the title company ususally determines the time frame.  5 business days is way too long.  I think 2 is reasonable.

This questions should be addressed to your escrow rep and their policies. Usually, they are quite fast in returning EMD and closing the file.

They should have it back within a week.  Usally is is less.

The regulations should work both ways, deposited within the next business day and returned upon the next business day. Maybe that's too simplistic for some.