Earnest Money Agreement
Updated 17 October 2025
This Earnest Money Agreement outlines the terms for a buyer to provide a deposit to an earnest money holder, reserving the right to purchase a specified property from a seller. It details the payment schedule, the responsibilities of each party for fees, and the conditions under which the earnest money may be forfeited as liquidated damages.
Earnest Money Agreement
[name of earnest money holder] (hereafter “Earnest Money Holder”), [name of seller] (hereafter “Seller”), and [name of buyer] (hereafter “Buyer”), hereby agree to the following:
The Buyer, wishing to purchase the property located at [address, city, state, zip] (hereafter “Property”) for the full amount of [monetary amount], will provide the Earnest Money Holder with the amount of [earnest money amount] no later than [date] in the form of [monetary format] at [account number].
The Earnest Money payment comprises only a fraction of the full amount. The remaining [monetary amount 1] will be paid by the Buyer no later than [date 1].
With the payment of Earnest Money, the Buyer reserves the right to purchase the Property from the Seller. Upon the receipt of the full payment, the Seller is required to provide the Buyer with the Deed of Absolute Sale within [number] days, guaranteeing the buyer full warranty, valid title, and complete ownership of the Property.
The Buyer shall be held responsible for [payments and fees].
The Seller shall be held responsible for [payments and fees 1].
The Earnest Money Holder shall be paid [fee/percentage] by the [buyer/seller] no later than [date 2].
If the Buyer chooses not to purchase the Property, the Earnest Money shall be granted in its entirety to the Seller as liquidated damages.
In witness to their agreement to the terms of this contract, the parties affix their signatures below:
____________________________________ _________________________________
[name of buyer] [name of seller]
[buyer signature] [seller signature]
[date 3] [date 4]
____________________________________
[name of earnest money holder]
[earnest money holder signature]
[date 5]
About this template
What is this template?
Earnest Money Agreement is a free, ready-to-use Banking and finance template you can open, customize, and download on GitLaw. It gives you a professionally structured starting point, so you never have to draft from a blank page. The wording is plain and modern, organized into clear sections that are easy to read, edit, and adapt to your own situation before you share or sign it.
When should you use it?
Reach for this Banking and finance template whenever you need a reliable agreement quickly and want to be sure the essentials are covered. It suits individuals, freelancers, startups, and established businesses alike. Instead of paying for a document drafted from scratch, you can start here, tailor the details to your arrangement, and have a polished draft ready in minutes. Always review the final wording against the laws that apply where you live or do business.
What's typically included?
A well-drafted Banking and finance usually sets out the parties involved, the scope of the agreement, and each side's rights and responsibilities. Expect sections covering key terms and definitions, how long the agreement lasts, how it can be ended, and what happens if something goes wrong. This template brings those building blocks together in a sensible order, so you can focus on the specifics rather than worrying about what to include. Open it to read the full document, then sign up to edit, negotiate, and e-sign it directly in GitLaw.