Earnest Money Contract printable pdf download

EARNEST MONEY CONTRACT

1. CONTRACT DATE:

, 20

2. PARTIES:

(Seller)

agrees to sell and convey to

(Buyer)

and Buyer agrees to buy from Seller the assets of that certain business known as

located at

3. CONTRACT SALE PRICE:

A. Cash Payable by Buyer at Closing ....................................................................................................... $

B. Sum of all notes and debts assumptions described in Section 4 below............................................. $

C. Total Contract Sales Price (Sum of 3A and 3B) ................................................................................... $

4. FINANCING: The sum described in paragraph 3B above shall be paid as follows (Check applicable boxes below):

A. ASSUMPTION OF PROMISSORY NOTE: Buyer shall assume the unpaid principal balance of a promissory note payable to

dated ________________, which unpaid balance at closing will be $______________. Buyer’s initial payment shall be the

first payment due after closing. The cash payable at closing shall be adjusted by the amount of any variance in the loan

balance(s) stated above; provided, if the total principal balance of all assumed loans varies at closing from the total of the

amount(s) stated above by amount greater than $250.00. If the noteholder on assumption requires modification of the

loan documents which are unacceptable to Buyer, or the noteholder refuses to allow assumption of said note, Buyer may

terminate this contract and the Earnest Money shall be refunded to Buyer.

B. ASSUMPTION OF EQUIPMENT LEASES: Buyer shall assume Seller's indebtedness on equipment leases in the amount of

$______________. Buyer's initial payment shall be the first payment due after closing. The cash payable at closing

Buyer's note to Seller shall be adjusted by the amount of any variance in the Seller's indebtedness by an amount greater

than $250.00. If the Lessor refuses to allow assumption of said indebtedness, Buyer may terminate this contract and the

Earnest Money shall be refunded to Buyer.

C. THIRD PARTY FINANCING: A third party first lien note of $____________. Buyer shall apply for all third party financing

within ______ days after effective date of this contract and shall make every reasonable effort to obtain the same. If such

financing or noteholder's waiver is not obtained within ______ days after effective date hereof, this contract shall

terminate and the Earnest Money shall be refunded to Buyer.

D. SELLER FINANCING: A Secured Promissory Note from Buyer to Seller of $.............................................. , bearing

interest per annum, and payable upon the terms and conditions as follows:

(1) In one payment of $

due

days after the date of the note plus accrued interest.

(2) $______________ payable in monthly other _________________ installments of $___________________

including interest beginning 30 days after the date of the note and continuing in equal installments for __ months when

the entire balance of the note shall be due and payable. Any Seller financed note may be prepaid in whole or in part

without penalty. Any prepayments are to be applied to the payment of the installments of principal last maturing and

interest shall immediately cease on the prepaid principal. This note shall be subject to a right of offset. The lien securing

payment of such note will be inferior to any lien securing any other note described in paragraph 4A or 4B above. Buyer

shall furnish Seller with a financial statement within seven (7) days after the effective date of this contract. If Buyer's

credit history or financial statement is not reasonably acceptable, Seller may terminate this contract within five (5) days

after receipt of such information by giving written notice to Escrow Agent and the Earnest Money shall be refunded to

Buyer. If Seller does not give notice of termination in writing within the time provided, Seller shall be deemed to have

approved Buyer's credit. Buyer hereby authorizes Buyer's credit report to be furnished to Seller.

5. EARNEST MONEY: $

is herewith tendered and is to be deposited as Earnest Money with Lawyers Escrow

Company as Escrow Agent, upon execution of the contract by both parties. Buyer has

days from the contract date to

EARNEST MONEY CONTRACT

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Earnest Money Contract

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