Updated October 31, 2022
An earnest money deposit receipt is supplied to a buyer who has expressed interest in a piece of property by providing a monetary deposit in a show of good faith. The earnest money should be made payable to a reputable third party such as an established real estate brokerage, legal firm, escrow company, or title company.
The receipt typically includes a refund policy section that explains when the seller is permitted to keep the deposit and when the buyer’s deposit will be refunded. If the sale goes through, the deposit may go towards the down payment. The deposit amount, deposit account/account holder, property address, and buyer and seller information should be written on the receipt.
Earnest Money Release Form – Required to be signed by the buyer and seller if the earnest money is requested to be returned prior to the closing of the property.