Release of Earnest Money Form

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The release of earnest money form is a waiver that is to be 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).

Disputes – If the buyer and seller disagree to 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.

Texas Residents – Use the TREC Version.

(Video) What is an Earnest Money Release Form?

How to Write

Download in Adobe PDF, Microsoft Word (.docx), or Open Document Text (.odt).

1 – The Release Addendum On This Page Is Downloadable

Once you locate the preview image and have determined this form is required for the concerned contract, you should download a copy to your machine. A few formats are available for your convenience: PDF, ODT, and MS Word. Select the one you prefer, then obtain the addendum.

2 – An Introduction Regarding The Current Parties And Agreement Must Be Completed

The beginning of this paperwork will feature an introductory paragraph with several blank spaces. Each of these areas will call for information to be supplied directly to them. The first two of these spaces must have the calendar month and day of this addendum input on the first space and the year of the addendum entered on the second of these spaces. The third empty space in this paragraph requires the name of the Buyer listed in the original contract. If there is more than one Buyer, then make sure both are documented in this area. You may use an editing program to add more space or cite an attachment if working on paper. Similarly, the person or persons listed as the Seller in the contract this addendum is focused on should be presented on the next blank line. The contract’s signature date will also have to be documented in this statement. Use the two blank spaces just before the labeled parentheses “Original Agreement” to report the calendar date when the Buyer and Seller signed the original contract. Now we will round out this paragraph by recording the property the original contract concerns. To document this information properly, use the blank space after the words “…Property Located At” to present the building number, street, and suite number of the physical address of this property. Naturally, you must make sure the full address appears in this statement so continue by entering the city and state where the concerned property is found.

3 – Define The Actions Taken With Earnest Money

The next section requesting information is titled “II. Earnest Money.” Here we will set the directives regarding any Earnest Money from this contract to paper. The first step will be identifying the Escrow Agent by producing his or her full name on the first blank space in this section. Afterwards, you must choose one of the paragraph statements by marking the appropriate checkbox then supplementing its language with the actions the Escrow Agent must take. If the Escrow Agent must release the earnest money to either the Buyer or the Seller (but not both), then mark the checkbox labeled “To One (1) Party.” After selecting this statement, Locate the “Buyer” and “Seller” checkboxes at the end then, select the party due the earnest money. You must enter the exact dollar amount the Escrow Agent will distribute to the payee on the blank space provided. If the Escrow Agent is to release the Earnest Money to both the Seller and the Buyer, then mark the checkbox labeled “To Both Parties.” This statement will require you record how much money is to be distributed to the Buyer on the first blank space and the amount that should be delivered to the Seller on the last blank line. Mark the checkbox labeled “To Both Parties” if both the Buyer and the Seller are due the earnest money. If so, then define how much the Escrow Agent will distribute to the Buyer on the first blank space along with the dollar amount the Seller will receive on the second blank line. The last option to detail what is expected of the Escrow Agent (as per this addendum) is labeled “Other.” You can mark this checkbox then furnish the details on how the distribution of the earnest money should occur on the blank lines provided. Make sure the instructions supplied here are specific and leave no room for ambiguity. If you are working onscreen with editing software, you can add more lines if you need more room for this report. Otherwise, you can add a properly titled (and signed) attachment that is cited here.

4 – The Buyers And Sellers Must All Sign This Document

The final article of this addendum, titled “III. Notice,” furnishes a specific area where both the Buyer and the Seller can supply the signatures required to execute this paperwork.

The first party called to sign below the statement here is the Buyer. Every Buyer who has signed the original contract and is named above must sign his or her Name on the “Buyer’s Signature” line. After the signing, the Buyer must print his or her name and document the current calendar date on the “Date” line. Enough area for two Buyers to sign this document has been supplied. Add more room or an attachment with enough room for any remaining Buyers to provide a dated signature with their printed names if there are more than two Buyers.  The Seller will need to supply the same items so this paperwork may be executed. Three blank spaces labeled “Seller’s Signature,” “Print Name,” and “Date” have been included for the Seller’s use. He or she must sign the “Seller’s Signature” line, provide his or her printed name on the “Print Name” line, then report the signature date on the line “Date.”