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Real Estate Earnest Money Agreement Template for England and Wales

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Key Requirements PROMPT example:

Real Estate Earnest Money Agreement

"Need a Real Estate Earnest Money Agreement for the purchase of a commercial property in central London, with a £50,000 earnest money deposit and a completion date of March 15, 2025, including specific clauses about property access during the due diligence period."

Document background
The Real Estate Earnest Money Agreement is a crucial document in property transactions within England and Wales, typically used when a buyer wishes to demonstrate serious intent to purchase a property. This agreement outlines the earnest money deposit amount, terms of the transaction, and conditions for deposit return or forfeiture. It serves as a precursor to the final contract of sale, protecting both parties' interests during the period between offer acceptance and exchange of contracts. The document must comply with English and Welsh property law requirements, including the Law of Property Act 1925 and the Law of Property (Miscellaneous Provisions) Act 1989.
Suggested Sections

1. Parties: Identification of buyer and seller with full legal names and addresses

2. Background: Context of the transaction and property details

3. Definitions: Key terms used throughout the agreement

4. Property Description: Detailed description of the property being sold

5. Purchase Price: Agreed purchase price and payment terms

6. Earnest Money Details: Amount, payment terms, and handling of earnest money deposit

7. Completion Date: Agreed date for completion of the transaction

Optional Sections

1. Due Diligence Period: Terms for buyer's investigation period, used when buyer requires time for property investigation

2. Financing Contingency: Conditions related to buyer obtaining financing, used when purchase depends on buyer securing mortgage

3. Property Survey: Terms regarding property survey requirements, used when a survey is required or anticipated

Suggested Schedules

1. Property Plan: Detailed plan or map of the property

2. Fixtures and Fittings List: Inventory of items included/excluded from sale

3. Property Information Form: Standard form providing detailed property information

4. Title Documents: Copies of relevant title documents and searches

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






























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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Law of Property Act 1925: Fundamental legislation governing property transactions in England and Wales, setting out basic requirements for contracts relating to land and legal formalities for property transactions

Law of Property (Miscellaneous Provisions) Act 1989: Key legislation requiring property contracts to be in writing and signed by all parties, specifying formal validity requirements for property contracts under Section 2

Consumer Rights Act 2015: Legislation protecting consumer rights in property transactions, particularly relevant if one party is a consumer rather than a business, ensuring fairness of contract terms

Land Registration Act 2002: Legislation governing the registration of land and property rights, including requirements for registered land and notice provisions

Common Law Contract Principles: Fundamental legal principles covering contract formation including offer, acceptance, consideration, and intention to create legal relations

Money Laundering Regulations 2017: Regulations requiring verification and due diligence in property transactions to prevent money laundering and financial crime

Estate Agents Act 1979: Legislation governing the conduct and obligations of estate agents in property transactions

Stamp Duty Land Tax Regulations: Tax regulations governing property transactions, including calculation and payment requirements for stamp duty land tax

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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