Document background
The Earnest Money Gift Letter is a crucial document in Pakistani property transactions where one party wishes to gift earnest money to another party, often within family relationships or close associates. This document becomes necessary when the earnest money for a property purchase is being provided as a gift rather than from the buyer's own funds. The letter must comply with Pakistani legal requirements, including the Transfer of Property Act 1882, Contract Act 1872, and Islamic law principles of Hiba (gift-giving). It should clearly establish the voluntary nature of the gift, specify the amount, purpose, and include necessary declarations for legal and religious compliance. The document helps prevent future disputes, ensures transparency in property transactions, and satisfies requirements of both financial institutions and property registrars in Pakistan.
