Earnest Money Deposits

Eastern Title holds earnest money deposits with the expectation that transactions will close as planned, with funds credited toward the purchase price at settlement. We have established terms governing how deposits are handled when a transaction does not proceed as anticipated — and by submitting this agreement, both buyers and sellers acknowledge that those terms apply to any deposit held by Eastern Title.

Deposits are held without interest. Eastern Title will notify you promptly if any funds are dishonored.

1. 1

   Disbursement at Settlement

   The deposit will be disbursed at settlement and credited toward the purchase price. If settlement does not occur, the deposit will be disbursed in accordance with a release of deposit agreement signed by both Buyer and Seller — or per the terms of the contract if it contains clear disbursement standards.

2. 2

   Dispute Notification Process

   Eastern Title will notify both parties by email of the intended disbursement and the legal basis for it. Either party may submit a written protest within three business days to prevent the distribution from proceeding.

3. 3

   Cost Recovery

   Eastern Title is entitled to reimburse itself out of the deposit for any costs incurred in holding or administering the funds. If the deposit is insufficient to cover those costs, both parties jointly and severally agree to reimburse Eastern Title.

4. 4

   Genuine Disputes

   In the event of a genuine dispute that cannot be resolved, Eastern Title may pay the funds into court or continue to hold them pending receipt of uniform written instructions from both parties.

5. 5

   Electronic Execution

   This agreement may be executed electronically and in counterparts, each of which shall be deemed an original and together shall constitute one and the same agreement.