Document background
A Demand Letter For Earnest Money is utilized when a party seeks to recover earnest money or deposits paid during a transaction that has not proceeded to completion. This document is particularly important in England and Wales as it forms part of the pre-action protocol requirements before court proceedings can be initiated. The letter should clearly state the grounds for demanding the return of funds, reference the original agreement, specify the amount involved, and provide a reasonable timeframe for compliance. It serves as both a formal demand and evidence of attempting to resolve the matter before escalating to litigation.
