Earnest Money Agreement

Sample Partial Preview

EARNEST MONEY ESCROW AGREEMENT

(NO INTEREST)

(1) THIS AGREEMENT is made and entered into the date set forth below, between ABC Company, the Escrow Agent, herein called the "Company", and_____________________________ Seller and ________________________ Purchaser, the undersigned depositors. 

(2) WHEREAS Purchaser and Seller wish to place this earnest money deposit in the amount of $__________ the form of_____________________, in the possession of a third party, Escrow Agent; and

(3) WHEREAS the Company is willing to hold said funds or promissory note, as Escrow Agent, for the benefit of Purchaser and Seller, 

(4) NOW THEREFORE, in consideration of the fee paid to the Company, subject to Exhibit I GENERAL PROVISIONS SPECIFICALLY INCORPORATED HEREIN BY REFERENCE, the Company agrees to hold such earnest money deposit until _________________, or apply said deposit, as instructed in writing, at the contract closing. During the period the Company is in possession of the earnest money deposit, any funds in the form of cash or check will be deposited in a federally insured financial institution. 

(5) In the event the Seller allegedly violates or defaults under the terms of the contract, Purchaser shall notify the Company and Seller of such default in writing. If after 15 days from the date notice of default was given to Seller, as certified to the Company by Purchaser in its Affidavit, the Company has been informed by Purchaser that Seller has not cured such default satisfactorily to Purchaser, the Company shall refund the earnest money deposit, less escrow fee, plus any earnings thereon, if applicable, to Purchaser subject to Paragraph 10 of Exhibit I.

(6) In the event the Purchaser allegedly violates or defaults the terms of the contract, Seller shall notify the Company and Purchaser of such default in writing. If after 15 days from the date notice of default was given to Purchaser, as certified to the Company by Seller in its Affidavit, the Company has been informed by Seller that Purchaser has not cured such default satisfactorily to the Seller, the Company shall pay over the earnest money deposit, less escrow fee, plus any earnings thereon, if applicable, to Seller, subject to Paragraph 10 of Exhibit I. 

(7) In the event of default by either Seller or Purchaser pursuant to paragraphs (5) or (6), above, any deposit in the form of a promissory note shall not be delivered to the designated party until the escrow fee has been paid to the Company.