Document background
An Earnest Money Contract serves as a crucial preliminary agreement in Nigerian real estate transactions, establishing the framework for property purchases while protecting both buyers' and sellers' interests. This document is typically used when a buyer wishes to demonstrate serious intent to purchase a property by providing a good faith deposit. The contract includes essential details such as property description, purchase price, earnest money amount, due diligence provisions, and closing requirements. It must comply with Nigerian property law, particularly the Land Use Act of 1978, and local state regulations where applicable. The document is especially important in the Nigerian context where property transactions can be complex and require careful documentation of parties' rights and obligations. The Earnest Money Contract helps prevent either party from backing out of the transaction without valid reason and provides clear remedies in case of default.
