Updated February 06, 2024
A release of earnest money form is a waiver signed by both the buyer and seller before an earnest money deposit towards a property may be released. For example, if the buyer entered into an agreement to purchase property contingent on an inspection being conducted, and the roof is found to leak, the buyer will be entitled to receive their funds returned. In accordance with most States’ laws, the earnest money is to be held in an escrow account of the agent (or a third party).
Handling Disputes
If the buyer and seller disagree on who is entitled to the earnest money, it is up to the local court. The agent or third (3rd) party holding the money shall be prohibited from releasing the funds until both parties agree or the local court administers a judgment.