What Is an Earnest Agreement Form?

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When you’re buying a piece of property, there are many essential forms that you'll need to fill out or put together. Your mortgage application, proof of funds letter and letter of income verification are just a few of these important pieces of paperwork. Some of these documents might seem like a given — who’d try to buy a house without a mortgage application? — but others are just as vital even if they’re not as well-known.

One of these less common (but equally important!) documents is called an earnest agreement form. This form is typically on the shorter side, but it takes care of a number of key tasks in the buying process. It helps sellers receive their deposits, protects buyers from deceptive property sales and ultimately contributes to the finalization of a real estate purchase. If you’re in the market to sell or purchase a new home soon, take a look at what an earnest agreement form involves and how it can benefit you.