Refund of earnest money
Contract deposit refund calculator
Enter the confirmed earnest-money amount in UAH and select the scenario supported by the documents. In Lviv disputes over preliminary arrangements for homes or business premises, the arithmetic is often simple but the legal classification is not: the tool does not determine whether a payment is earnest money, who is responsible for the failed deal, or whether the transaction form requirements were met.
Scenario calculation of the consequences for earnest money
The calculation is performed in hryvnias and kopecks without intermediate rounding. Choose a path only after checking the contract, written evidence, and reasons for non-performance.
Baseline refund — double the deposit amount. The calculator doubles the confirmed earnest money but does not establish a breach or the recipient’s fault.
Hryvnias only, with no more than two decimal places. Do not enter a movable earnest-money amount, a foreign-currency equivalent, or several payments combined.
Enter the full amount of documented losses. For the fault-based branch, only the excess over the deposit will be shown separately.
Estimated result
Scenario arithmeticScenario rule: Baseline refund — double the deposit amount.
Important: The tool does not determine whether a payment is earnest money, establish fault or causation, or determine the amount of proven losses. Contract terms may change the consequences relating to losses.
- Entered payment
- 100 000,00 UAH
- Remains with the recipient
- 0,00 UAH
- Losses exceeding the earnest money
- Not determined in this branch
The brief summary is easy to paste into a message to a lawyer or save for yourself.
What exactly Article 571 of the Civil Code models
Earnest money is more than an advance payment: under Articles 546–548 and 570 of the Civil Code, it secures and evidences performance of an obligation. If the amount is not established to be earnest money, it is treated as an advance. The written form of the security transaction matters under Articles 207 and 547.
If the party that gave the earnest money is responsible for the breach, it remains with the other party. If the recipient is responsible, they return the earnest money and additionally pay an equal amount — 2D in total. If the obligation ended before performance began or performance became impossible, the earnest money is returned in the single amount.
Article 571 also links earnest money to losses: the party at fault compensates losses exceeding the earnest money, unless the contract provides otherwise. Existence, amount, causation, and fault are assessed under the contract and Articles 22, 614, 617, and 623 of the Civil Code.
Calculation methodology
Scenario assessment methodology
The user enters one confirmed monetary amount in hryvnias; the value is converted to a whole number of kopecks.
The user selects the scenario because the calculator does not characterize the payment or identify the liable party.
The three branches under Article 571 apply 0 × D, 2 × D, or 1 × D respectively, without intermediate rounding.
For the fault-based branch, the entered proven losses are compared with D; only the positive excess L − D is shown separately.
If the status of the deposit is unconfirmed, the automatic total is blocked, while D remains a reference for analyzing the advance payment.
Example
Example with an agreement about a house near Lviv
The buyer paid UAH 100,000 toward a future agreement for a house in Lviv Oblast. For this example, assume the signed documents establish that the amount is earnest money and the seller who received it is responsible for failure to perform.
- Scenario: the party that received the earnest money is liable
- Confirmed earnest money D: UAH 100,000
- Proven losses L: UAH 135,000
The baseline refund is UAH 200,000. A separate arithmetic estimate of losses above the deposit is UAH 35,000.
The example does not prove the validity or form of a preliminary or main agreement, the status of the payment, fault, or damages. The overall result depends on the agreement and evidence.
Documents for review
- The principal, preliminary or other agreement, including all appendices and amendments.
- A separate written deposit clause, receipt, payment instruction and bank statement.
- Correspondence about the subject, price, term, method of entering into the agreement, and reasons for non-performance.
- Notice of refusal, termination, cancellation, or inability to perform, and proof of service.
- Documents for each claimed component of losses and an explanation of its causal link.
- For real estate, provide documents proving title, the parties’ authority, and compliance with the required form of the contract.
Frequently asked questions
Is the word “earnest money” in the payment reference sufficient?
No. Assess the principal obligation, the written form of the security transaction, the contract terms, and evidence that the payment served the security and evidentiary functions specifically.
Why is the result double the amount when the recipient is at fault?
Article 571 provides for return of the earnest money plus an additional payment equal to that amount. Arithmetically, this is 2 × D, if the payment’s status as earnest money and the recipient’s liability are already established.
Is the deposit refundable if the transaction was cancelled by agreement?
If the obligation ends before performance begins, the earnest money must be returned. However, the termination document must clearly address payments, actions performed, and mutual claims.
Can damages be claimed as well?
Under Article 571, the party at fault compensates losses to the extent they exceed the earnest money, unless the contract provides otherwise. Each component of the losses, causation, and amount must be proven.
What happens if the payment turns out to be an advance?
A double refund or deduction under the earnest-money rules does not apply automatically. The agreement, actual performance, basis for receiving the money, and proper method of making a claim must be analyzed.
Resources for your situation
Calculations and checks
Guidance and instructions
Official sources
- Civil Code of UkraineArticles 22, 207, 524, 533, 546–548, 570–571, 614, 617, 623, 635, and 657 govern form, earnest money, damages, fault, and specific contractual claims.
- Leninskyi District Court of Kirovohrad: guidance on earnest money and an advance paymentThe court’s official publication explains the difference between a deposit and an advance, and the importance of properly documenting the principal obligation.
- Review of the Civil Court of Cassation’s case law on eviction and use of housingThe official Supreme Court review is supplementary context for analysing housing relations, not a calculator formula.
- Resolution of the Supreme Court of Ukraine dated April 4, 2006 No. 43/543The court applied part two of Article 571, awarding only the portion of losses that exceeds the earnest money.
- Prepared
- The methodology was prepared by the website editorial team based on official sources.
- Important
- The tool provides a preliminary result and does not replace document review.
Current as of . The calculation is preliminary and depends on the documents and circumstances.
Free initial consultation
Need to review the payment and why the transaction fell through?
Submit an application to review the agreement, transfers, and correspondence, identify the proper claim, and prepare a position for negotiations or a dispute in Lviv or Lviv Oblast.
- the calculator result can serve as a reference for a conversation
- documents, deadlines, or contract terms may change the conclusion
- briefly describe the circumstances in the form if needed