Understanding the Earnest Money Demand Letter Sample

[Your Name] [Your Address] [Your Phone Number] [Your Email Address] [Date] [Seller's Name] [Seller's Address] Subject: Earnest Money Demand - Property at [Property Address] - Failure to Proceed Dear [Seller's Name], This letter is to formally demand the return of the earnest money deposit in the amount of $[Amount] paid in relation to the purchase agreement dated [Date of Agreement] for the property located at [Property Address]. As you know, the purchase agreement included an inspection contingency period that expired on [Date of Contingency Expiration]. Unfortunately, due to unforeseen circumstances related to [briefly explain the circumstance, e.g., a family emergency, unexpected job relocation], I was unable to complete the agreed-upon home inspection within this timeframe. According to section [Relevant Section Number] of our purchase agreement, failure to satisfy or waive contingencies by the specified deadlines allows the non-defaulting party to retain the earnest money. As the inspection contingency was not met, and as I am unable to proceed with the purchase under these conditions, I am formally requesting the release of the earnest money back to me. I have enclosed a copy of the purchase agreement for your reference. I kindly request that you instruct your escrow agent to release the full earnest money deposit to me within ten (10) business days of the date of this letter. Thank you for your understanding in this matter. Sincerely, [Your Signature] [Your Typed Name]

[Seller's Name] [Seller's Address] [Seller's Phone Number] [Seller's Email Address] [Date] [Buyer's Name] [Buyer's Address] Subject: Earnest Money Demand - Property at [Property Address] - Breach of Contract Dear [Buyer's Name], This letter serves as a formal demand for the forfeiture of the earnest money deposit in the amount of $[Amount] that you provided for the purchase of my property located at [Property Address], as per our agreement dated [Date of Agreement]. Unfortunately, you have failed to fulfill your obligations as outlined in the purchase agreement. Specifically, section [Relevant Section Number] of the agreement required you to secure financing by [Date for Financing]. As of today, this deadline has passed, and I have not received confirmation that financing has been secured. Furthermore, according to section [Another Relevant Section Number], failure to meet financing deadlines constitutes a breach of contract on the buyer's part, giving the seller the right to retain the earnest money as liquidated damages. Therefore, I am formally demanding that the full earnest money deposit be released to me by your escrow agent. I have instructed my attorney to contact the escrow company to facilitate this process. I trust you understand the seriousness of this situation. Sincerely, [Your Signature] [Your Typed Name]

[Buyer's Name] [Buyer's Address] [Buyer's Phone Number] [Buyer's Email Address] [Date] [Escrow Company Name] [Escrow Company Address] Subject: Demand for Release of Earnest Money - Property: [Property Address] - Buyer: [Buyer's Name] - Seller: [Seller's Name] To Whom It May Concern, This letter is a formal demand for the release of the earnest money deposit in the amount of $[Amount] held by your company in relation to the purchase of the property located at [Property Address]. The transaction involved [Buyer's Name] as the buyer and [Seller's Name] as the seller, with our purchase agreement dated [Date of Agreement]. The purchase agreement contained a contingency for [Specify Contingency, e.g., satisfactory home inspection, appraisal]. This contingency was not met, as evidenced by [briefly explain why, e.g., the attached inspection report detailing significant structural issues, the appraisal coming in below the purchase price]. As per section [Relevant Section Number] of the purchase agreement, the contingency was not satisfied by the deadline of [Date]. Therefore, according to the terms of the agreement, the earnest money is to be released to the buyer. I have attached a copy of the purchase agreement and [relevant documentation, e.g., the inspection report, the appraisal]. I kindly request that you process the release of the full earnest money deposit to me within ten (10) business days of the date of this letter. Please contact me at [Your Phone Number] or [Your Email Address] if you require any further information. Sincerely, [Your Signature] [Your Typed Name]

[Seller's Name] [Seller's Address] [Seller's Phone Number] [Seller's Email Address] [Date] [Escrow Company Name] [Escrow Company Address] Subject: Demand for Release of Earnest Money - Property: [Property Address] - Buyer: [Buyer's Name] - Seller: [Seller's Name] To Whom It May Concern, This letter is a formal demand for the release of the earnest money deposit in the amount of $[Amount] held by your company in relation to the purchase of the property located at [Property Address]. The transaction involved [Buyer's Name] as the buyer and [Seller's Name] as the seller, with our purchase agreement dated [Date of Agreement]. The buyer, [Buyer's Name], has failed to fulfill their obligations under the terms of the purchase agreement. Specifically, the buyer has [state the specific breach, e.g., failed to close on the property by the agreed-upon closing date of [Closing Date], failed to secure necessary financing despite the deadline of [Financing Deadline]]. According to section [Relevant Section Number] of the purchase agreement, the buyer's failure to [reiterate the breach] constitutes a material breach of contract, entitling the seller to retain the earnest money deposit as liquidated damages. I have attached a copy of the purchase agreement and documentation supporting the buyer's default, such as [mention any supporting documents, e.g., correspondence from the buyer indicating inability to close, notice of loan denial]. I kindly request that you process the release of the full earnest money deposit to me within ten (10) business days of the date of this letter. Please contact me at [Your Phone Number] or [Your Email Address] if you require any further information. Sincerely, [Your Signature] [Your Typed Name]

[Your Name] [Your Address] [Your Phone Number] [Your Email Address] [Date] [Other Party's Name] [Other Party's Address] Subject: Earnest Money Dispute - Property at [Property Address] - Purchase Agreement Dated [Date of Agreement] Dear [Other Party's Name], I am writing to you today regarding the earnest money deposit of $[Amount] held in relation to the purchase of the property at [Property Address], as outlined in our agreement dated [Date of Agreement]. A dispute has arisen concerning the forfeiture or return of these funds, and I believe a clear understanding and resolution are necessary. The circumstances leading to this dispute involve [clearly and concisely describe the situation from your perspective]. I believe that based on section [Relevant Section Number] of our purchase agreement, the earnest money should be [state your desired outcome and why, e.g., returned to me because the seller failed to disclose a significant issue with the roof, forfeited to me because the buyer abandoned the contract without valid reason]. Alternatively, if there is a misunderstanding regarding the terms of our agreement or the situation, I am open to discussing this further to find a mutually agreeable resolution. I propose we schedule a call or meeting within ten (10) business days of this letter to discuss this matter and attempt to reach a resolution. Please contact me at your earliest convenience to arrange this. Sincerely, [Your Signature] [Your Typed Name]

To: [Recipient Email Address] From: [Your Email Address] Subject: Request for Compromise: Earnest Money - [Property Address] Dear [Recipient Name], I hope this email finds you well. I'm writing regarding the earnest money deposit of $[Amount] for the property at [Property Address], related to our purchase agreement dated [Date of Agreement]. As you know, the transaction did not proceed as planned due to [briefly state the reason, e.g., unforeseen financial difficulties, issues discovered during the inspection]. I understand that earnest money is intended to show commitment. However, I am currently in a difficult position and would like to explore the possibility of a compromise regarding the deposit. While I recognize the terms of our agreement, I would be grateful if you would consider returning a portion of the earnest money, specifically $[Amount you are requesting to be returned]. I believe this could be a fair resolution given the circumstances of [briefly reiterate why a compromise is fair, e.g., the significant costs I've already incurred, the fact that I acted in good faith]. I am open to discussing this further and finding a solution that works for both of us. Please let me know your thoughts or if you would be available for a brief call to talk this over. Thank you for your time and consideration. Best regards, [Your Name]