Earnest Money Clause Samples
The Earnest Money clause defines the requirement for a buyer to deposit a specified sum of money as a sign of good faith when entering into a contract, typically for the purchase of real estate. This deposit is usually held in escrow and may be applied toward the purchase price at closing or forfeited if the buyer fails to fulfill their contractual obligations. The core function of this clause is to demonstrate the buyer’s commitment to the transaction and to provide the seller with some financial assurance in case the buyer defaults.
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Earnest Money. Upon the ▇▇▇▇▇▇▇on of this Agreement, Highwoods will deliver to Investors Title Insurance Company (hereinafter referred to as the "Escrow Agent") the sum of One Hundred Thousand and no/100 Dollars ($100,000.00) (hereinafter the "Earnest Money"). The E▇▇▇▇▇▇ Money shall be d▇▇▇▇▇▇▇d by the Escrow Agent into an interest bearing account at the direction of Highwoods, and shall be paid to Owner or Highwoods according to the provisions set forth below. Upon Closing, the Escrow Agent shall deliver all Earnest Money, plus in▇▇▇▇▇▇ which has accrued thereon, to Highwoods. In the event the transaction contemplated by this Agreement is not closed solely because of any default on the part of Owner, or if any of the conditions precedent set forth in Section 8.01 fail to be satisfied at Closing, or if Highwoods terminates its obligations set forth herein pursuant to any other provision of this Agreement, then the Escrow Agent shall pay to Highwoods all Earnest Money, including ▇▇▇▇▇▇st which has accrued thereon, but such return shall not affect any other remedies available to Highwoods in the event of a breach of this Agreement by Owner. In the event the transaction contemplated by this Agreement is not closed solely because of any default on the part of Highwoods, then the Escrow Agent shall pay to Owner all Earnest Money, including ▇▇▇▇▇▇st which has accrued thereon, and such payment, when added to the $1,900,000.00 payment due from Highwoods to Owner (in the event of Highwoods' default hereunder) pursuant to Section 15 hereof, shall be and represent liquidated damages arising out of Highwoods' default, which liquidated damages shall be the full extent of Highwoods' liability with respect to such default and Owner shall have no further right or claim against Highwoods. Upon the filing of a written demand for the Earnest Money by Highwoo▇▇ ▇▇ ▇wner, pursuant to this Section 3, the Escrow Agent shall promptly mail a copy thereof to the other party. The other party shall have the right to object to the delivery of the Earnest Money by filing ▇▇▇▇▇▇▇ notice of such objection with the Escrow Agent such that it is actually received by the Escrow Agent at any time within ten (10) days after the mailing by the Escrow Agent of such copy to it, but not thereafter. Such notice shall set forth the basis for objecting to the delivery of the Earnest Money. Upon re▇▇▇▇▇ ▇f such notice, the Escrow Agent shall promptly mail a copy thereof to the party who filed the written demand. If...
Earnest Money. Within tw▇ (▇) ▇usiness days after the Effective Date, Buyer shall deliver to the party designated by Seller at the address to be supplied by Seller, at Ticor Title Insurance Company, Syracuse, NY ("Title Company") a check or wire transfer in the amount of $200,000.00, which the Title Company shall immediately deposit for collection in an interest bearing account or accounts bearing interest at not less than the daily passbook rate. Interest shall accrue on the sum of $75,000 of such Earnest Money at the gre▇▇▇▇ ▇f (i) the daily passbook rate on depository accounts at the financial institution used by the Title Company or (ii) the rate of interest actually accruing on such amount. Interest on the balance of the Earnest Money for the per▇▇▇ ▇▇▇ween the end of the Inspection Period and Closing shall be deemed to accrue at the rate of 2.78% per annum. If, for any reason this Agreement is terminated prior to the expiration of the Inspection Period, then the Earnest Money and any in▇▇▇▇▇▇ accrued thereon shall be immediately returned to Buyer. If this Purchase and Sale Agreement is not so terminated, and the transaction contemplated hereby proceeds to Closing, the Earnest Money shall be p▇▇▇ ▇▇ Seller at Closing and Buyer shall receive a credit against the purchase price payable hereunder in the amount of the Earnest Money plus inter▇▇▇ ▇▇▇rued or deemed to have accrued thereon at the rates set forth above. As used in this Agreement, the term "Earnest Money" shall me▇▇ ▇▇▇ amount deposited by Buyer, together with all interest accrued thereon or deemed to have accrued thereon, as provided above.
Earnest Money. 2.01 Purchaser shall pay Twenty Five Thou▇▇▇▇ ▇▇d No/100 Dollars ($25,000.00) to Seller upon Purchaser's execution and delivery of this Agreement, which amount shall be held by Seller as earnest money (hereinafter referred to as "EARNEST MONEY") and shall ▇▇ ▇▇▇▇ied against the Purchase Price as pr▇▇▇▇▇▇ for in Paragraph 3.00 hereof, or otherwise disbursed or retained by Seller in accordance herewith.
Earnest Money. (a) On the Effective Date (defined in ▇▇▇▇▇▇▇ 9.14), as a condition to the continued effectiveness of this Contract, Buyer shall deposit with Marble Title Company, L.L.C. (TITLE COMPANY), as agent for Chicago Title Insurance Company (CLOSING AGENT), 2001 Bryan Street, Suite 1700, Dallas, Texas 75201, ▇▇▇▇▇▇▇▇▇: Kerri A. Majors, Phone: (214) 965-1672, Fax: (214) ▇▇▇-▇▇▇▇, $▇▇▇,000 in (▇) ▇▇▇▇▇▇▇▇▇▇▇ available federal ▇▇nds or (ii) the form of an unconditional and irrevocable letter of credit in favor of Seller and Closing Agent on terms and from an issuer reasonably acceptable to Seller (a LETTER OF CREDIT) (the EARNEST MONEY).
(b) The Earnest Money, if paid in the ▇▇▇▇ ▇f immediately ▇▇▇▇▇▇▇le federal funds (and not by Letter of Credit), shall be applied to the Purchase Price at Closing, however, any Letter of Credit shall be returned to Buyer after Closing with no portion of its funds having been credited against the Purchase Price. The Earnest Money is non-refundable to Buyer in all ev▇▇▇▇, ▇xcept for a Seller default or as otherwise specifically set forth herein. If Buyer fails to deliver the Earnest Money, this Contract will automatically terminate. If Buyer fails to close the transaction on January 31, 2005, and the Closing is not extended by mutual written agreement of the parties or pursuant to the provisions of SECTION 6.1, this Contract will automatically terminate, the Earnest Money will be paid to Seller and the parti▇▇ ▇▇▇▇ have no further obligations to each other. If any of the Earnest Money is in the form of a Letter of Credit ▇▇▇▇, any reference in this Contract to Seller being paid any portion of the Earnest Money is deemed to include and Seller shal▇ ▇▇▇▇ the right to draw upon the Letter of Credit and retain the proceeds.
(c) If this Contract does not close, the Earnest Money will be paid or the Closing Agent sh▇▇▇ ▇▇▇iver the Letter of Credit as provided in this Contract. Closing Agent shall, promptly upon receipt, place the wire transferred Earnest Money in a federally insured, interest bea▇▇▇▇ ▇▇count. All interest on the Earnest Money becomes part of the Earnest Money. All ▇▇▇▇rest on the Earnest Money w▇▇▇ ▇▇ reported to the Internal Rev▇▇▇▇ ▇▇rvice as income of Buyer. Buyer shall promptly execute and deliver to Closing Agent all forms reasonably requested by Closing Agent with respect to the Earnest Money. Buyer acknowledges and agrees that, ▇▇▇▇▇▇ for a default by Sellers under SECTION 7.1 or SECTION 7.2 or the occurrence of a Maj...
Earnest Money. (a) It is a condition precedent to the ▇▇▇▇▇▇iveness of this Agreement that within five (5) days of the execution of this Agreement by Purchaser, Purchaser shall deposit with Republic Title of Texas, Inc., 2626 Howell Street, 10th Floor, Dallas, Texas 75204, ▇▇▇▇: ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ (the "CLOSING AGENT"), by wire tr▇▇▇▇▇▇ ▇▇ ▇▇▇▇▇▇▇▇ ▇▇ a cashier's check, immediately available federal funds in the amount of Ten Thousand Dollars ($10,000) (along with any accrued interest, the "EARNEST MONEY").
(b) On the Closing Agent's receipt o▇ ▇▇▇ ▇arnest Money, the Closing Agent shall deposit suc▇ ▇▇▇▇▇st Money into an interest-bearing money marke▇ ▇▇▇▇▇nt maintained at a federally insured bank or savings and loan association located in Dallas County, Texas. Such account shall have no penalty for early withdrawal, and Purchaser agrees and acknowledges that Seller shall have no responsibility or liability for any loss of the Earnest Money or any portion thereof. If the Earne▇▇ ▇▇▇▇y to be delivered pursuant to Section 2.2(a) is not timely delivered by Purchaser to the Closing Agent, Seller may terminate this Agreement by delivering written notice of such termination to Purchaser. Upon said termination, (i) neither Seller nor Purchaser shall have any further obligation or liability to the other hereunder, except as provided in Sections 5.3. and 6.4 hereof, and (ii) Purchaser shall deliver to Seller all of the Documents and Purchaser's Information (as defined in Section 5.2(c)).
(c) Upon execution hereof, Purchaser shall deliver to Seller the sum of $100.00 which shall be independent consideration for this Agreement (the "INDEPENDENT CONSIDERATION").
(d) If the transaction contemplated hereby is consummated in accordance with the terms and provisions hereof, the Earnest Money shall be credited against the Purcha▇▇ ▇▇▇▇e at Closing. All interest earned shall be reported to the Internal Revenue Service as income of Purchaser and Purchaser shall promptly execute all forms reasonably requested by the Closing Agent with respect thereto.
(e) The balance of the Purchase Price, as adjusted by the prorations and credits specified herein, less the Earnest Money and less the amount of the Note, sha▇▇ ▇▇ ▇aid on the Closing Date in t/he manner set forth in Section 6.2.
Earnest Money. 3.▇ ▇▇▇n execution of this Contract, Purchaser shall deposit with American Title Company located at 4950 Westgrove, Suite ▇▇▇, ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇, ▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇ Ann Sutton (hereinaft▇▇ ▇▇▇▇▇▇▇d to as the "Title Company"), cash in the amount of $25,000.00 (the "Initial Deposit") to assure prompt observance of this Contract by Purchaser.
3.2 On the date of the expiration of the Inspection Period (as that term is defined in Paragraph 6.1 herein) and if Purchaser has not terminated this Contract pursuant to Paragraph 6.1 herein, then Purchaser shall deposit an additional Twenty-Five Thousand Dollars ($25,000.00) as earnest money with th▇ ▇▇▇▇▇ Company (the "Additional Deposit"). The Additional Deposit together with the Initial Deposit shall be collectively referred to herein as the "Earnest Money Deposit".
3.3 The Earnest Money Deposit ▇▇▇▇▇ be deposited by the Title Company and placed in an interest bearing account. All interest accruing thereon shall be for the benefit of Purchaser.
3.4 The Earnest Money Deposit ▇▇▇▇▇ apply to the Purchase Price at Closing.
Earnest Money. Pu▇▇▇▇▇▇▇ shall deposit with Capdevielle Title Corporation (the Title Agent"), as escrow agent and agent for the Title Company, as defined below, the sum of Twenty Five Thousand and 00/100 Dollars ($25,000.00), as earnest money, contem▇▇▇▇▇▇▇usly with the execution of this Agreement by Purchaser, to be held in Title Agent's interest bearing trust account (with interest accruing to the benefit of the Purchaser) and to be credited against the Purchase Price at Closing (said earnest money, and ▇▇▇ and all interest accrued thereon, hereinafter collectively called the "Deposit"
Earnest Money. 3 Amount of Consideration for Contribution of Property to Highwoods.................................................4
Earnest Money. No later than one (1) business day after the last day o▇ ▇▇▇ ▇nspection Period (hereinafter defined), Purchaser shall deposit with the Escrow Agent the sum of Two Hundred Thousand Dollars ($200,000) (the "Earnest Money") in good funds, by federal wire transfer. The Escrow Ag▇▇▇ ▇▇▇ll hold the Earnest Money in an interest-bearing account in accordance with the te▇▇▇ ▇▇▇ conditions of this Agreement. All interest accruing on such sum shall become a part of the Earnest Money and shall be distributed as Earnest Money in accordance ▇▇▇▇ ▇▇e terms of this Agreement.
Earnest Money. A. Not later than 3 days after the effectiv▇ ▇▇▇▇, Buyer must deposit $ see spec . pron. p . 8 as earnest money with TARVER ABSTRACT CO. (title company and ▇▇▇▇▇▇ agent) at L▇▇▇▇▇▇, Tx_______________________ (title company's address). Buyer will deposit additional earnest money of $ N/A on or before: [_] (i) the N/A day ▇▇▇▇▇ ▇uyer's right to terminate under Paragraph 7B(3) expires; or [_] (ii) N/A. The title company is the escrow agent under this contract.
B. If Buyer fails to timely deposit the earnest money, Seller may terminate this contract by prov▇▇▇▇▇ ▇ritten notice to Buyer before Buyer deposits the earnest money and may exercise Seller's remedies under Pa▇▇▇▇▇▇▇ 15.
C. Buyer may instruct the escrow agent to deposit the earnest money in an interest-bearing account at a federal▇▇ ▇▇▇▇red financial institution and to credit any interest to Buyer.