Updated on January 15th, 2021
The earnest money release form accommodates the process of removing the initial earnest money funding from the nominated escrow or trust account and distributing it to a selected receiver. For the contract to be deemed valid, both the buyer and seller must agree to the terms, determining the proper dispensation of the financial sum. Customarily, the money is used toward the transaction amount for the purchase upon closing. Alternate circumstances can allow for the discharge of the funding to the buyer, seller, or both for several reasons. Contingencies present within the purchase agreement may designate that the buyer is free from forfeiture of earnest money if an inspection of the home returns a negative result for a particular segment of the residence. Another possible deterrent from transaction finalization could be if financing by the buyer is denied. Should the situation arise where the parties cannot come to an agreement on the money’s release, legal action may be taken.
Residents of the state of Texas – Utilize the Texas Association of Realtors Release of Earnest Money Form