An earnest money receipt is a document that is commonly used in the real estate market. An earnest money receipt binds the parties into the agreement by giving certain protections to both of them. It should be attached to a printable real estate sales contract — a crucial document that sets out prices and terms for deals involving real estate. Use the earnest money contract form below to create this addendum to real estate purchase contract online, or download it as a PDF or Word file.
Last Updated: October 2026. This guide is reviewed and updated regularly to reflect current law. If you notice an error or outdated information, please contact us.
An earnest money receipt is a document that is given by an escrow agent to the buyer after the latter puts their funds on an escrow account or trust. It is common in situations where the buyer shows an interest in real estate and attaches the receipt to an offer to the seller about purchasing their property. In most cases, the earnest money is received when the property purchase agreement has signatures of both buyer and seller.
The earnest money deposit rate is typically set at 1%-3% of the sales price (in the majority of cases, buyers have to pay a minimum of $1,000).
It is common to include earnest money provision in real property purchase agreements. It is not a secret that sellers are more inclined to accept an offer with the most favorable financial profile. An earnest money deposit acts as proof of a good financial profile of a purchaser and helps a seller think that they will have more assurances and a sale might close on time.
Sellers need the assurances because the multiple listing service (MLS) which is used by real estate brokers helps see the status of the home as “under contract” in case the seller accepts an offer to purchase their home. Consequently, another potential buyer and their real estate agent will pass by the listing and look for homes that are still available.
For a buyer, there are certain benefits they get when they use an earnest money receipt. The points below explain what the receipt can do for a buyer and how it supports an offer.
In total, an earnest money receipt helps put the purchaser in more favorable agreement terms as they have started their relations with the seller by presenting good faith.
For a seller, the advantages of using earnest money deposits are obvious too. First, avoiding the agreement might make them lose their earnest money. Further, they might be monetarily assured that the buyer will not back out of the agreement unless key terms are breached (for instance, if the home inspection shows unsatisfactory results and the buyer has the right to get earnest money back).
There are certain components that should be included in every earnest money receipt. Use the list below as a checklist when you review a receipt. Each item names one piece of information the receipt records, so a reader can match the deposit to the right purchase agreement.
The steps below follow the FormsPal earnest money contract template that you can create or download on this page. Each step matches one part of the form, in the same order as the form itself. This page was last updated in 2026, so the steps match the current template.
The screenshots under each step show the FormsPal Earnest Money Contract template filled with sample entries in blue, so you can see where each answer goes. The names, addresses, dates and amounts are examples only.
Once the form is filled in, a few simple steps finish the job. The list below covers how to record the payment, who signs the receipt and where to keep your copies.
To start from an attorney-reviewed earnest money receipt template, use the form at the top of this page.
Release of Earnest Money – use this form to release all or one party under the purchase agreement from liability and determine how the earnest money deposit should be distributed.
After money has been deposited, they are held in an escrow or trust account until closing, and the parties to an agreement are obliged to move forward with the negotiations regarding the agreement. If the deal is successful, the deposited money can be used as a part of the closing costs or eventual down payment the buyer pays or as a return to the buyer when the seller gets the sales price in full.
In case the deal fails, the earnest money deposit will go to one of the parties, depending on the provisions in the agreement. For instance, there might be a contingency in the purchase agreement about the earnest money deposit being forfeited if the financing issue arises that interferes with the sale. In this case, deposited money is not refundable.
Earnest money and down payment differ by purpose. If you keep the earnest money on an escrow account, or a trust it implies a promise to the seller that you as a buyer take the deal seriously and show your good faith to buy their real estate. In this case, the promise is made to the owner of the property.
Downpayment, in its turn, is paid when the property is already purchased and acts as the sum paid to a seller upfront (typically, 20%). This sum is usually paid to the lender to approve the loan on the real property, while a financial institution provides the remaining amount. A downpayment is typically paid after an agreement is reached and signed, and the sale is on its way to being completed. In this case, the promise of making the payment is made to the lender.
The FormsPal template asks for these details, in this order:
The template is written from the escrow agent's point of view, since the agent acknowledges receipt of the deposit. You can enter the amount and the purchase agreement details first, then pass the receipt to the escrow agent to add their name, title and date.
Yes. Select Create My Document at the top of this page, answer a few questions and save your progress to finish on any device. You can also download the PDF or Word file and fill in the PDF with the FormsPal PDF editor.
Keep the purchase agreement nearby, because the receipt asks for the seller, the buyer, the property address and several dates from it. Ask the escrow agent for their full name and title too.
The purchase agreement sets out the terms of the sale. The earnest money receipt is a short record that the escrow agent has received the deposit. The 2 documents work together, so keep them side by side.
You can download the earnest money contract form in 2 formats, as a PDF or as a Word file. The PDF keeps the layout of the form, and the Word file is handy when you want to edit the text before you print.
Read the receipt from top to bottom. Check that these 4 details match the purchase agreement: the deposit amount, the names, the property address and the dates. Correct any typo before the escrow agent adds a signature.
Keep the signed receipt next to the purchase agreement, so both documents stay together. Save 1 digital copy too, for example as a PDF on your computer or in cloud storage.
General information, not legal or tax advice.
