Earnest Money Agreement Template

This Earnest Money Agreement is made on [Date] by and between:

Buyer: [Full Name]
Address: [Address]

Seller: [Full Name]
Address: [Address]

Escrow Holder: [Escrow Agent / Title Company / Broker / Attorney / Other]
Address: [Address]

1. Property Information

This Agreement relates to the following property:

Property Address: [Property Address]
City, State, ZIP Code: [City, State, ZIP Code]

Legal Description, if applicable:

[Insert legal description]

2. Related Transaction

This earnest money deposit is connected to the following transaction:

☐ purchase and sale agreement dated [Date]
☐ offer to purchase dated [Date]
☐ option agreement dated [Date]
☐ other related agreement: [Describe]

Reference details, if any:

[Insert reference number or identifying details]

3. Earnest Money Deposit

The Buyer agrees to deposit earnest money in the amount of:

[$Amount]

The earnest money shall be paid by:

☐ personal check
☐ cashier’s check
☐ wire transfer
☐ certified funds
☐ other: [Describe]

The deposit must be delivered no later than:

[Date and Time]

4. Escrow Holder Duties

The Escrow Holder shall hold the earnest money in escrow pending the terms of the related transaction and this Agreement.

The Escrow Holder shall:

hold the funds in a designated account, if required;
disburse the funds only as allowed by this Agreement, the related contract, or written instructions of the parties;
maintain reasonable records of receipt and disbursement;
act in a neutral capacity unless otherwise required by law or written agreement.

Additional escrow instructions, if any:

[Insert details]

5. Application of Earnest Money at Closing

If the transaction closes, the earnest money shall be:

☐ credited toward the purchase price
☐ credited toward closing costs
☐ applied as follows: [Describe]

6. Return or Release of Earnest Money

If the transaction does not close, the earnest money shall be handled as follows:

☐ returned to Buyer if the contract is properly terminated under a contingency or cancellation right
☐ released to Seller if Buyer defaults under the related agreement
☐ released according to joint written instructions of Buyer and Seller
☐ released as required by court order or applicable law
☐ other: [Describe]

Additional release terms, if any:

[Insert details]

7. Dispute Over Earnest Money

If Buyer and Seller dispute the release of the earnest money, the Escrow Holder may:

☐ continue holding the funds until written agreement is reached
☐ release the funds only under court order
☐ interplead the funds if permitted by law
☐ act as otherwise stated here: [Describe]

Any costs, fees, or legal expenses relating to a deposit dispute shall be handled as follows:

[Insert terms]

8. Failure to Make Deposit

If Buyer does not deliver the earnest money as required, the following shall apply:

☐ the related agreement may be terminated by Seller
☐ Buyer shall be in default
☐ the parties may extend the deadline in writing
☐ other: [Describe]

9. Interest on Funds

Interest earned on the earnest money, if any, shall belong to:

☐ Buyer
☐ Seller
☐ be credited at closing
☐ be handled as follows: [Describe]

If no interest is intended, write:

[None]

10. Notices

Any notice regarding the earnest money shall be sent to:

Buyer Notice Address: [Address]
Seller Notice Address: [Address]
Escrow Holder Notice Address: [Address]

Notice may be delivered by:

☐ email
☐ personal delivery
☐ certified mail
☐ overnight courier
☐ other: [Describe]

11. No Change to Related Contract Unless Stated

Except as specifically stated in this Agreement, this document does not change the other terms of the related purchase, sale, option, or transaction agreement.

If there is a conflict between this Agreement and the related contract, the following shall apply:

[Insert terms]

12. Governing Law

This Agreement shall be governed by the laws of the state of [State].

13. Entire Agreement

This Agreement contains the full understanding of the parties regarding the earnest money deposit described above and replaces prior discussions on that subject unless otherwise stated in writing.

14. Signatures

Buyer Signature: __________________________
Name: [Full Name]
Date: [Date]

Seller Signature: __________________________
Name: [Full Name]
Date: [Date]

Escrow Holder Signature: __________________________
Name: [Full Name]
Title: [Title, if applicable]
Date: [Date]