An earnest money receipt produces a paper record detailing information about the money allocated to secure the purchase of real estate before the predetermined closing date. The earnest money is granted to the buyer as a demonstration of good faith. The funds are presented by the buyer to establish that they have the means to follow through with the sale terms provided in a purchase agreement. The money is typically safeguarded in a trust or escrow account, an intermediary entity to hold the monetary sum until either the sale is finalized or the funds released.
Earnest Money Release – Paperwork to be utilized to discharge the earnest money to be allocated toward closing costs for the buyer, returned to the buyer, or redistributed to the seller. The document must be agreed upon and signed by both the buyer and seller for the funds to be relinquished.
Real Estate Purchase Agreement – Contractual arrangement designed to cover the exchange of a piece of real estate for a designated financial compensation.