Entering into an agreement or a contract not only requires a party to be knowledgeable about the terms, provisions, and conditions to be enforced but should also be aware of the financial responsibilities accompanying the other roles and obligations defined in the contract. One of the common financial responsibilities of a party in a contract is to provide earnest money. With this, a release of earnest money form should be used by the involved parties in the event that a contract termination had been agreed on.
Types of Release of Earnest Money Forms
Mutual Release of Earnest Money Form – Earnest money deposits are refundable, especially upon the termination of the signed contract. If both parties of the contract or the buyer and seller have agreed to immediately terminate the contract and release all claims to reduce disputes in lieu of the earnest money deposit, then a mutual release of earnest money form must be used. This type of form is for documenting the approval of both parties to the termination and the releasing of the deposit as well as in waiving their rights to file claims and demands related to the contract and the release procedure.
Mutual Release of Earnest Money Form
Moreover, the information to be disclosed in a mutual release of earnest money form would include the parties’ names, the background of the sale contract, the details of the release and the earnest money, and the signatures of the buyer, the seller, and the listing and cooperating brokers.
Realtors Release of Earnest Money Form – This form type is only intended to be used by members of a realty agency of company who have managed a property sale transaction with a client. With this form, the parties of the contract will be released from any liabilities and will be able to acquire the earnest money disbursement. The name of the escrow agent, the amounts of earnest money to be released to each party, and the signatures of the involved parties will be the contents of this form.
Realtors Release of Earnest Money Form
Release of Earnest Money Agreement Form – In this form type, there are four sections to be filled out by the users of the form. The first section is for indicating the escrow file number of the form which is essential for keeping and tracking the form when sent to the archives. The second section, on the other hand, is the preamble or the recital of the contract agreement while the third section specifies the earnest money amount and the transfer method preferred by the involved parties whether using a bank wire transfer or through mailing the deposit. Lastly, a signature block serves as the fourth section which is for collecting the signatures and phone numbers of the sellers, buyers, and witnesses.
Release of Earnest Money Agreement Form
Release of Earnest Money Authorization Form – As compared to the aforementioned forms, this form not only specifies the disbursement of the earnest money but also the sale interest amounts which had been accrued during the period of the contract. This means that the seller will need to provide or release the interests paid by the buyer along with the earnest money. Furthermore, the form also states the names of the listing and selling offices whom the managing brokers are representing in as well as the names of their authorized agents.
Release of Earnest Money Authorization Form
Release of Earnest Money Termination Notice Agreement Form – This form is accompanied by an information form which defined the broker agency’s rules and regulations or laws which are to be observed in lieu of the earnest money release and the contract termination. The attorneys of the buyer and the seller can also represent them and sign on their behalf in this form type.
Release of Earnest Money Termination Notice Agreement Form
How to Use Release of Earnest Money Form Templates
The templates should first be downloaded into the device which will be used for filling in the entries or data of the involved parties. After the template is downloaded, it should then be extracted since it is in a compressed zip file which protects and keeps the document intact regardless of the transfers and download procedures. Then, the extracted form should be saved into the device with its appropriate file name which depends on the preference of the agency or organization who will use the form. Lastly, the form can either be used electronically by filling in the entry fields using a program or application that allows edits and customizations to be done on the form, or be used manually by printing out the form and writing in the data.
Release of Earnest Money Form Sample
Release of Earnest Money Form FAQs
Who should sign the release of earnest money form?
Aside from the buyer and the seller of the property, the other parties who need to affix their signatures on the form would be the selling broker, the listing broker, the listing attorney, and the witnesses of the buyer and the seller.
Release of Contract and Disbursement of Earnest Money Form
Can a verbal earnest money release be done?
No. An earnest money release should be written or be documented physically. The reason for this is to avoid disputes and claims which can lead to possible lawsuits of either party. With the documented release, both parties will have proof that the earnest money was released and that the release was authorized by both of them for the termination of the signed contract form.
Release of Earnest Money Deposit Agreement Form
Release of Earnest Money Form Tips
When making or signing a release of earnest money form, both parties should be aware of the payments submitted during the period of the contract. The payments include interests, reservation fees, counteroffers, and any funds or money which had been given and can be disbursed back to the buyer. Moreover, if the payments are meant to be distributed to the other parties of the contract, then the names of each party should be enlisted in the release of earnest money form along with the expected amount that they will be receiving.
Another tip to keep in mind is to always seek out the advice and guidance of a lawyer or an attorney who is knowledgeable in real estate transactions. This ensures that the contents of the form are based on the regulations of the State and the terms of the sale agreement.
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