Release of Earnest Money Form

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Updated June 01, 2022

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).

Texas Residents – Use the TREC Version.


If the buyer and seller disagree on who is entitled to the earnest money, it is up to the local court to decide. The agent or third (3rd) party that is holding the money shall be prohibited from releasing the funds until both parties are in agreement or the local court administers a judgment.


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Introduction Statement

(1) Creation Of Release. The date when this release is developed for issue is the first item required by this letter’s introduction. Two spaces have been formatted to accept this calendar date.

(2) Identity Of The Buyer. Continue through this area to the label “Buyer.” This will be the Party who has previously entered an agreement as a Purchaser requiring a sum of money to be held in reserve (i.e. escrow). Produce the Buyer’s full name as it was documented in the purchasing agreement this letter concerns in the first space presented then submit his or her official mailing address to the second space. Note that if a Business Entity was the Buyer then, its entire legal name should be furnished to this section.

(3) Name And Address Of The Seller. Naturally, there will be two Parties participating in the majority of purchase agreements requiring an escrow. The Seller who signed the original agreement must be identified with his or her full name and his or her complete mailing address. As with the Buyer, if this Party is a Business Entity then its legal name will be required in this section including any registered suffix of status (i.e. corp., LLC., etc.).

I. Original Agreement

(4) Original Agreement Signature Date. Now that the Parties surrounding this release have been identified, the topic of the agreement this document applies to must be engaged. Section I requests that the latest signature date found on the purchase agreement being discussed by this release is submitted to the formatted spaces preceding the label “Original Agreement.”

(5) Concerned Real Estate. The real property that the original purchase agreement concerned must be identified with its physical address. Supply the address of its geographical location (as displayed in the purchase agreement) to the space provided.

II. Disbursement

(6) Escrow Agent. Identify the Escrow Agent who currently holds the earnest money that was required by the original (purchase) agreement and is responsible for its appropriate release on the blank space displayed in Section II.

Complete Item 7 Or Complete Item 10 Or Complete 13

(7) 1 Party. This release must define whether one or both of the Parties identified in the introduction (the Buyer and the Seller) will receive the earnest money currently held by the Escrow Agent. If only one of these Parties will be issued the earnest money, then place a mark in the checkbox “1 Party.” If this is the case, then some information will be needed by this statement.

(8) Total Amount. The total dollar amount of the earnest money that will be released through this document must be documented in the space provided.

(9) Target Of Release. Now that it has been established that only one Party from the introduction will be entitled to the earnest money amount, one of the two checkboxes provided by this statement must be selected to indicate which Party will be the target Recipient of this release. Select the “Buyer” checkbox to set the Buyer named in the introduction as the Recipient of the earnest money or select the “Seller” checkbox if the Seller must be the Recipient.

(10) Both Parties. If the Buyer and the Seller will each be entitled to a portion of the earnest money then select the checkbox “Both Parties.” Additional information will be required by this option, therefore, once selected continue to supply the amounts requested.

(11) Buyer Amount. Document the dollar amount the Buyer will be entitled to receive from the escrow fund being released.

(12) Seller Amount. Present the exact amount of money that shall be released to the Seller from the escrow fund.

(13) Other. If the Escrow Agent will be expected to dispense the earnest money in a manner that cannot be defined (adequately) by the choices available in Section I then the “Other” checkbox will allow a direct report on how the escrow fund must be released. Thus, if needed, choose the checkbox labeled “Other” and then utilize the space this option provides to give a detailed report on how the Escrow Agent must proceed with the release. More space may be inserted as needed for this record or an attachment that is made present and permanently affixed to this release by the time of signing may be made so long as it is named here.


(14) Buyer Release Acknowledgement. In order for this release to be properly executed, both Parties named in the introduction must complete their respective signature areas. To this end, the Buyer should review all the sections and attachments making up this release, then, on satisfaction, sign his or her name on the “Buyer Signature” line. In addition to the signature of acceptance, the Buyer must also print his or her name and supply the current calendar date as the signature date immediately after signing.

(15) Seller Signature Acceptance. The Seller must also confirm his or her acknowledgment of this release by signing the “Seller’s Signature” line, printing his or her name on the “Print Name” line, and formally submitting the current calendar date as his or her signature date.