Document background
The Earnest Money Contract serves as a fundamental instrument in Australian property transactions, demonstrating the buyer's serious intention to purchase a property through a good faith deposit. This document is typically used at the initial stages of a property purchase, after price negotiation but before the full contract of sale is executed. It includes essential details such as the property description, purchase price, deposit amount, settlement terms, and any conditional requirements. The contract must comply with state-specific property laws and regulations within Australia, including requirements for property transactions, trust account handling, and consumer protection measures. It provides security for both parties by establishing clear terms for the deposit's handling and setting out the conditions under which it may be refunded or forfeited.
