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Earnest Money Escrow Agreement

Free earnest money escrow agreement template — a neutral third party holds a buyer's good-faith deposit until a real estate transaction closes.

This free earnest money escrow agreement covers 1. Deposit, 2. Escrow Agent's Duties, 3. Disbursement Upon Closing, 4. Disbursement Upon Termination, 5. Dispute Resolution with 6 clearly marked [placeholder] fields to fill in — built for landlords, tenants, and small property owners documenting a lease or tenancy change clearly, without guessing at the right structure. Copy it into your own word processor, fill in the placeholders, and review it — or adapt it — before use. It's part of docstoc's free document template library, alongside business, legal, real estate, finance, and HR templates. Every template here is free to copy with no signup required, and each one carries a plain disclaimer: this is a starting point for informational purposes, not a substitute for advice from a licensed professional in your jurisdiction.

Template — click to edit

Earnest Money Escrow Agreement

Buyer: [Name] · Seller: [Name] · Escrow Agent: [Name/Title Company] Property: [Address] · Purchase Agreement Date: [Date]

1. Deposit

Buyer has deposited [Amount] with Escrow Agent as earnest money in connection with the purchase agreement referenced above.

2. Escrow Agent's Duties

Escrow Agent will hold the earnest money in a [non-interest-bearing/interest-bearing] account and disburse it only as instructed jointly by Buyer and Seller, or as ordered by a court of competent jurisdiction.

3. Disbursement Upon Closing

Upon closing, the earnest money will be credited toward Buyer's purchase price.

4. Disbursement Upon Termination

If the purchase agreement is terminated, the earnest money will be disbursed per the terms of that agreement (e.g. returned to Buyer if a contingency fails, or paid to Seller if Buyer defaults without an applicable contingency).

5. Dispute Resolution

If Buyer and Seller cannot agree on disbursement, Escrow Agent may interplead the funds with a court and be released from further liability.

6. Escrow Agent's Liability

Escrow Agent is not liable for any action taken in good faith reliance on instructions believed to be genuine.


Buyer: ______________________ Date: ____________ Seller: ______________________ Date: ____________ Escrow Agent: ______________________ Date: ____________

*This document is provided for informational and educational purposes only and does not constitute legal advice. The escrow agent's core job is neutrality — releasing funds based on only ONE party's instruction, without the other's written agreement or a court order, is exactly the kind of mistake that exposes an escrow agent to liability.*

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What's included

Who this template is for

Freelancers & solo founders

Handling routine business paperwork without commissioning custom legal drafting for every document.

Small businesses

Standardizing recurring documents — leases, agreements, notices — across a growing operation.

Anyone reviewing before signing

Using a clear starting structure to understand what a document should cover, even if a lawyer finalizes it.

Independent landlords

Managing a rental directly, without a property management company's paperwork.

FAQ

Is this earnest money escrow agreement template really free?

Yes. Like every template in docstoc's library, this earnest money escrow agreement is free to use, with no account or signup needed to view, edit, or download it.

What does this earnest money escrow agreement cover?

This real estate template includes 1. Deposit, 2. Escrow Agent's Duties, 3. Disbursement Upon Closing, 4. Disbursement Upon Termination. Fill in the [bracketed] placeholders, edit any clause online, then download a PDF — the docstoc.io footer stays on every export.

Is this legal advice?

No. This covers the structure most real estate documents share, but specifics like required disclosures, notice periods, and security-deposit rules are set at the state or city level and change often. Verify against your local landlord-tenant law, or have a real estate attorney check it, before relying on it.

Can I edit the wording?

Yes. All 6 placeholder fields and every clause are editable right on the page — change what doesn't fit, then download an updated PDF anytime.

Where can I find more free templates like this?

Browse more free real estate and related document templates in the docstoc library at /document-templates/.

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