Real Estate Earnest Money Agreement

Real Estate Earnest Money Agreement Template for United States

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Key Requirements PROMPT example:

"I need a Real Estate Earnest Money Agreement for a commercial property purchase in California, with a $50,000 earnest money deposit and financing contingency, closing planned for March 2025."

Document background

The Real Estate Earnest Money Agreement is a crucial document in U.S. property transactions that demonstrates the buyer's serious intention to complete the purchase. This agreement typically includes details about the property, purchase price, earnest money amount (usually 1-5% of purchase price), contingencies (such as financing, inspection, and appraisal), and specific timelines for closing. It provides protection for both parties and serves as the preliminary agreement before the final purchase contract. The document must comply with state-specific real estate laws and local regulations.

Suggested Sections

1. Parties: Identification of buyer and seller with full legal names and addresses

2. Background: Context of the transaction and property being sold

3. Definitions: Key terms used throughout the agreement

4. Property Description: Detailed legal description of the property being sold

5. Purchase Price: Total amount and payment terms

6. Earnest Money: Amount, deposit terms, and handling provisions

7. Closing Provisions: Date, location, and requirements for closing

8. Default and Remedies: Consequences of default and available remedies

Optional Sections

1. Financing Contingency: Terms related to buyer's ability to obtain financing - include when buyer requires mortgage financing

2. Inspection Contingency: Terms for property inspection and related rights - include when buyer wants right to inspect property

3. Sale Contingency: Conditions related to sale of buyer's current property - include when buyer needs to sell existing property

Suggested Schedules

1. Property Disclosure Statement: Detailed disclosure of property condition and known defects

2. Lead-Based Paint Disclosure: Required for properties built before 1978

3. Property Inspection Report: If inspection has been completed

4. Title Report: Preliminary title report showing property status

Authors

Alex Denne

Head of Growth (Open Source Law) @ ��Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

Relevant legal definitions

Agreement

Business Day
Effective Date

Warranties

Clauses

Relevant Industries

Residential Real Estate
Commercial Real Estate
Investment Real Estate

Relevant Teams

Legal
Real Estate
Finance
Compliance
Operations

Relevant Roles

Real Estate Agent
Real Estate Broker
Property Manager
Real Estate Attorney
Escrow Officer

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Let's create your Real Estate Earnest Money Agreement

Authors

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