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The Earnest Money Deposit Form is a crucial document in Philippine real estate transactions, used when a prospective buyer wishes to demonstrate serious intent to purchase a property. This document becomes necessary at the initial stages of a property purchase, typically after initial negotiations but before the final sale agreement. It outlines the deposit amount (usually 1-5% of the purchase price), specifies how the funds will be held, and details conditions for return or forfeiture. The form must comply with Philippine Civil Code requirements and local real estate regulations, including specific provisions under the Maceda Law for protecting buyers' rights. The document serves as a binding agreement that helps prevent either party from backing out of the transaction without valid cause, while also providing clear procedures for dispute resolution and deposit handling.

1. Parties: Identifies the parties involved: the prospective buyer (depositor) and seller (recipient), including their complete legal names, addresses, and contact information

2. Background: Brief context of the transaction, including the intent to purchase and the purpose of the earnest money deposit

3. Definitions: Key terms used in the document, including 'Earnest Money,' 'Property,' 'Purchase Price,' and other relevant terms

4. Property Details: Complete description of the property being purchased, including address, property boundaries, and title information

5. Deposit Amount and Payment Terms: Specifies the earnest money amount, payment method, and when/how it will be paid

6. Deposit Holder: Identifies who will hold the earnest money (e.g., escrow agent, real estate broker, or seller) and their responsibilities

7. Application of Deposit: Explains how the earnest money will be applied to the purchase price or handled if the sale proceeds

8. Return/Forfeiture Conditions: Specifies conditions under which the deposit will be returned to the buyer or forfeited to the seller

9. Execution: Signature blocks for all parties, including dates and witnesses as required by Philippine law