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  • Earnest Money Disbursement And Mutual Release 2008

Get Earnest Money Disbursement And Mutual Release 2008-2025

Reset the Form EARNEST MONEY DISBURSEMENT AND MUTUAL RELEASE 1 PROPERTY ADDRESS: 2 BUYER NAME(s): 3 SELLER NAME(s): 4 BINDING CONTRACT DATE: 5 EARNEST MONEY AMOUNT (Total): 6 HOLDER OF EARNEST MONEY:.

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The Release of Earnest Money It is always a good idea for the broker to seek a written release from both parties before releasing the earnest money deposit. If both parties claim the deposit, the broker should not release the funds until the two sides have come to terms or a court order is presented.

The earnest money may be held by the seller's real estate broker, but the money may also be held in escrow by a third-party title company, lawyer, or bank. The purchase and sale contract specifies where the deposit is held.

Paying earnest money deposit The funds remain in the trust or escrow account until closing. That's when they get applied to the buyer's down payment or closing costs. Alternatively, you can receive your earnest money back after closing.

A seller can also add a “time is of the essence” clause into the purchase agreement. This means the closing date for the sale is binding. If the buyer can't close for any reason, the contract is breached and the seller can keep the earnest money deposit.

In a hot market, the seller will sometimes ask to have the earnest money deposit released to him after the contingencies have been satisfied. The seller likes this because it means he will not have any trouble gaining possession of the deposit if the buyer defaults.

Earnest money is a good faith deposit you make into an escrow account after your offer is accepted to show the seller your commitment to buy. A down payment is a portion of the total purchase price you pay at closing when you're using a mortgage loan to finance the home purchase.

In most U.S. jurisdictions, the earnest money deposit, held in escrow during the contract period by a title company, lawyer, broker, or bank, must be returned within a brief period of time, usually 48 hours, when a buyer properly walks away from a deal.

It's typically around 1 – 3% of the sale price and is held in an escrow account until the deal is complete. The exact amount depends on what's customary in your market. If all goes smoothly, the earnest money is applied to the buyer's down payment or closing costs.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232