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Release Of Earnest Money Form Template for England and Wales

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Key Requirements PROMPT example:

Release Of Earnest Money Form

"I need a Release of Earnest Money Form to authorize the return of a £25,000 deposit to the buyer following the mutual termination of a property purchase agreement on January 15, 2025, ensuring all parties are released from further obligations."

Document background
The Release Of Earnest Money Form is a crucial document in property transactions within England and Wales, typically used when a property purchase agreement is terminated or when funds need to be released following completion. This document provides formal authorization for the release of funds held in escrow and includes details of the original transaction, parties involved, amount to be released, and terms of the release. It protects all parties' interests by creating a clear audit trail and preventing future disputes regarding the earnest money deposit.
Suggested Sections

1. Party Information: Names and details of buyer, seller, and escrow agent/stakeholder

2. Property Details: Information about the property related to the earnest money

3. Amount Details: Amount of earnest money being released and payment details

4. Release Statement: Clear statement of release and discharge of obligations

5. Execution Block: Signature blocks for all parties

Optional Sections

1. Reason for Release: Explanation of why the earnest money is being released (used when contract termination needs to be documented)

2. Mutual Release: Broader release of claims between parties (used when parties want to prevent future claims)

3. Disbursement Instructions: Specific instructions for disbursement of funds (used when payment method needs to be specified)

Suggested Schedules

1. Original Contract Reference: Copy or reference to the original purchase agreement

2. Proof of Deposit: Documentation showing the original earnest money deposit

3. Bank Details: Banking information for return of funds

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: Primary legislation governing real property transactions, defining requirements for contracts involving land and establishing rules for deposits and their handling

Law of Property (Miscellaneous Provisions) Act 1989: Contains Section 2 requirements for contracts for sale of land and formal requirements for written documents

Financial Services and Markets Act 2000: Regulates the handling of client money and establishes requirements for holding deposits in escrow accounts

Money Laundering Regulations 2017: Sets out verification requirements and due diligence obligations for financial transactions including property deposits

Common Law Principles: Encompasses contract law principles (offer, acceptance, consideration), principles of restitution, and principles regarding return of deposits

Trust Law: Governs rules regarding holding money in trust and establishes fiduciary duties of stakeholders

Consumer Rights Act 2015: Applies when one party is acting as a consumer and establishes fairness requirements in consumer contracts

FCA Regulations: Applicable if the transaction involves regulated entities and establishes client money rules

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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