Notice of Earnest Money Deposit: Free Template + Generator
A Notice (or Receipt) of Earnest Money Deposit is a short document confirming that a buyer's earnest money has been deposited with a neutral escrow holder per a real estate purchase agreement, and explaining when and how the deposit will be released back to either party. Used to memorialize the deposit chain of custody and reduce post-deal disputes.
When to use this document
- Immediately after the buyer wires or delivers earnest money to a title company, real estate attorney, or other neutral escrow holder.
- In private (FSBO) transactions where no agent or broker is generating a paper trail automatically.
- When the buyer wants written confirmation that the deposit was actually received (rather than just trusting verbal confirmation).
- When the escrow holder is someone other than a standard title company (e.g., an attorney trust account) and the parties want explicit terms documented.
What it covers
- Receipt confirmation: the escrow holder acknowledges receiving the funds, in good funds, on a date certain.
- Custody: the funds are held in a segregated trust or escrow account, separate from the holder's operating funds.
- Release conditions: the precise circumstances under which the deposit is released to seller (closing, buyer default), refunded to buyer (contingency termination, seller default), or held pending dispute resolution.
- Interpleader clause: what happens if the parties can't agree on disposition — the holder typically interpleads the funds with a court.
Why this matters in private sales
In a broker-assisted transaction, the brokerage's standard processes handle deposit management automatically. The earnest money flows into the listing brokerage's trust account, gets logged, and follows the brokerage's standard release procedures.
In a private sale, none of that infrastructure exists. The buyer wires money to a title company or attorney. There's no automatic system documenting the deposit, no standard release procedure, and the parties may disagree later about what was supposed to happen. A short written Notice resolves most of those potential disputes upfront.
What ClosingDesk does (and doesn't)
We do NOT hold earnest money. That's an escrow function requiring state licensing we don't have. What we do: prepare and record the deed once the deal has closed. If you need an escrow holder, hire a title company or real estate attorney — typical cost is $200-$500 for the deposit-holding service.
This Notice template documents the deposit YOUR escrow holder is holding. The escrow holder signs to acknowledge receipt; the buyer and seller sign to acknowledge they understand the release conditions.
Free Notice generator
Fill in the details below and download a Notice of Earnest Money Deposit PDF for all three parties to sign. Free, no email required.
This Notice documents the existence and terms of an earnest money deposit but does not itself create an escrow relationship or modify the Purchase Agreement. The escrow holder's own engagement letter or trust account agreement controls their fiduciary obligations. Consult an attorney for high-value deposits or unusual escrow arrangements.