Legal Contracts Software Generator - Legal Contract Agreement Template for Earnest Payment

# Earnest Payment Agreement **This Earnest Payment Agreement ("Agreement") is made and entered into as of [Date], by and between:** **Seller:** [Seller's Name] [Seller's Address] [City, State, Zip] [Email Address] [Phone Number] **Buyer:** [Buyer's Name] [Buyer's Address] [City, State, Zip] [Email Address] [Phone Number] **1. Purpose** This Agreement outlines the terms and conditions regarding the earnest payment made by the Buyer to the Seller as part of the purchase process for the property located at [Property Address] ("Property"). **2. Earnest Payment** The Buyer agrees to make an earnest payment of [Amount in Dollars] ("Earnest Money") to demonstrate good faith in the transaction. The Earnest Money will be held in trust by [Escrow Company or Agent's Name] until the closing of the sale or termination of this Agreement. **3. Payment Terms** - The Earnest Money shall be delivered to the designated escrow agent within [Number of days] days of the execution of this Agreement. - The Earnest Money will be applied to the purchase price at closing or refunded to the Buyer under the terms of this Agreement. **4. Conditions of Earnest Money Refund** The Earnest Money shall be refundable to the Buyer under the following conditions: - The Buyer loads out from the transaction during the due diligence period, as outlined in the subsequently executed Purchase Agreement. - The Property fails to satisfy the conditions of financing as outlined in the Purchase Agreement. - Any other mutually agreed-upon conditions as detailed in a written document executed by both parties. **5. Default** Should the Buyer fail to fulfill their obligations under this Agreement: - The Seller shall retain the Earnest Money as compensation for damages. - If the Seller defaults, the Earnest Money shall be returned to the Buyer in full. **6. Governing Law** This Agreement shall be governed by and construed in accordance with the laws of the State of [State]. **7. Entire Agreement** This Agreement constitutes the entire agreement between the parties related to the subject matter hereof and supersedes all prior negotiations, representations, or agreements. **8. Amendment** This Agreement may only be amended in writing, signed by both parties. **In witness whereof, the parties hereto have executed this Earnest Payment Agreement as of the day and year first above written.** --- **Seller's Signature:** ___________________________ **Date:** ______________ **Buyer's Signature:** ___________________________ **Date:** ______________ --- **Escrow Agent's Signature:** ___________________________ **Date:** ______________ **Name of Escrow Agent:** [Escrow Company's Name or Agent's Name] [Escrow Company's Address] [City, State, Zip] [Phone Number] --- ***This document is for informational purposes only and does not constitute legal advice. It is advisable to consult with a qualified attorney prior to entering into any binding contractual agreement.***