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Sample Earnest Money Agreement

A Earnest Money agreement is a generally accepted first step for the sale or rental of real estate. It helps to show that the buyer or tenant makes a serious offer and often serves as a down payment when the sale is actually in progress. A Earnest Money Deposit (earnest) agreement recalls the amount of money in question and helps both parties be honest until the purchase itself is made and the deed is transferred. Other names: Earnest Payment, Earnest Money Deposit, Earnest Money Contract It is expressly agreed that this property purchase agreement includes the entire buyer and seller agreement. This agreement binds the heirs, personal representatives, successors and beneficiaries of the transfer, both the buyer and the seller. The main purpose of issuing these documents will be to verify the receipt of Earnest Money held by a third party. Start with the message of the calendar date to which earnest Money was received by the agent who acts as Earnest Money Holder in the first empty line (top of the page). c Document the full name of the person who gave the serious money on the empty space just before the term “The Earnest Money Holder… was received. The next two empty lines are reserved to document the amount of the dollar sent to the Earnest Money Holder that issues this receipt. Write the dollar on the empty space after “… Receipt Of The Earnest Money In The Amount Of” then, you produce the numerical value of the dollar amount on the empty line in the bracket. We must now indicate how that money was obtained. A short list of boxes has been displayed to provide this information.

Check the checkbox titled “Check,” “Credit Card” and/or “Other” to determine how earnest money was received. Note: If you checked “Divers” because the money was deposited as a cheque or credit card, you must use the vacuum provided to define how it was received (i.e. the payment order). While the buyer and seller can negotiate the serious money deposit, it is often between 1% and 2% of the purchase price of the house, depending on the market. In hot real estate markets, the deposit could be between 5% and 10% of the sale price of a property. Let`s say Tom wants to buy Joy a $100,000 house. To facilitate the transaction, the broker arranges to deposit $10,000 into a trust account. The terms of the subsequent agreement, signed by both parties, stipulate that Joy, who currently lives in the apartment, will leave the house within the next six months.