Earnest Money Escrow Agreement

When we talk about earnest money escrows, it means that it protects the seller if the buyer backs out, typically around 1-3% of the sale price, and is held in an escrow account until the deal is complete. With this sample template, you can easily have you customize the agreement earnest money escrow right away.

Where can I get a free earnest money escrow agreement template?

Facts on who keeps earnest money if the deal falls through:
Most U.S. jurisdictions require that when a buyer timely and properly drops out of a contract, the money can be returned within a brief period of time. The earnest money can be held in escrow during the contract period by a title company lawyer, bank, or broker.

Sample generic sentences for earnest money escrow agreement:

Below is provided a sample template. You can download it and use it after making changes as per your requirements and criteria. We are not only providing you tips, but also a sample file that you can use after certain edits. Here is a sample letter for your guidance:

1. This Agreement is made and entered into the date set forth below, between, {{Company name and address}}, as Escrow Agent, herein called the “Company”, and A as Seller and B as Purchasers, the undersigned depositors.
2. Whereas, Depositor(s) wish to place this earnest money deposit in the amount of $ in the form of a (check/wire/promissory note-pick one) In the possession of a Third Party, said Escrow Agent; pursuant to that certain contract dated for the property known as and
3. Whereas, the Company is willing to hold said funds, as Escrow Agent, for the benefit of the depositor(s).
4. Now therefore, in consideration of the fee paid to the Company, in the amount of $--0--, subject to the Exhibit A, as Printed on the second page of this document and specifically incorporated herein by reference, the Company agrees to hold such earnest money deposit, until CLOSE OF ESCROW, or apply said deposit as instructed in writing, at the contract closing. During the period the Company is in possession of the earnest money deposit, any funds in the form of cash or check will be deposited in a federally insured bank in increments of {{amount}} per insured account.
5. In the event the Seller allegedly violates or defaults under the terms of the contract, Purchaser shall notify the Company and Seller of such default in writing. If after 15 days from the date of notice of default was given to the Seller, as certified to the Company by Purchaser in its written affidavit, the Company has been informed by Purchaser that Seller has not cured such default satisfactorily to Purchaser, the Company shall refund the earnest money deposit, less escrow fee, plus any earnings thereon, if applicable, to Purchaser subject to Paragraph 9 of Exhibit “A”.
   

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