Is the form legally binding?

Yes. A properly executed Good Faith Deposit Form functions as part of the contract; electronic signatures are enforceable under ESIGN (15 U.S.C. §7001) and UETA where adopted when intent, consent, attribution, and retention are established.

Can I use electronic signatures?

Generally yes. ESIGN and UETA permit electronic signatures for most real estate-related documents, though a small set of exceptions may require wet-ink signatures; confirm lender, title, or state-specific requirements.

Who should hold the funds?

Escrow companies, title firms, or licensed attorneys commonly hold earnest money. The form should name the holder and account; state escrow rules may apply and the holder must follow written disbursement instructions.

What if the buyer defaults?

Return or forfeiture of the deposit depends on the contract terms and applicable state law. Remedies often include seller retention or damage claims; consult counsel for contested releases or disputed entitlements.

Is notarization required?

Notarization is typically not required for a standalone deposit form, though deeds and certain instruments recorded at closing frequently need notarized acknowledgements; follow state recording requirements when documents are combined.

How do I cancel or revoke?

Revocation depends on contract language and contingencies. To revoke, provide written notice as required by the agreement, obtain mutual consent, or follow contractual remedies; maintain records of any electronic revocation under ESIGN standards.

Electronic Signature
Templates
Miscellaneous
Real Estate Good Faith Deposit Form

Real Estate Good Faith Deposit Form

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

REAL ESTATE GOOD FAITH DEPOSIT FORM

Date:

WHEREAS

WHEREAS, Buyer Name: (the "Buyer") desires to purchase the real property described below; and

WHEREAS, Seller Name: (the "Seller") is willing to accept a good faith deposit to be held in escrow pending completion of the transaction; and

WHEREAS, the parties agree to the terms and conditions set forth herein for handling, application, and disposition of the good faith deposit.

PROPERTY & TRANSACTION DETAILS

Property Address Purchase Agreement Date Purchase Price

SCOPE OF DEPOSIT

The Buyer shall deliver a good faith deposit to the Escrow Agent in the amount set forth below as an earnest demonstration of intent to proceed with the purchase. The deposit shall be held, applied, or released in accordance with the terms of this form and the purchase agreement.

Scope / Special Instructions (Describe application, contingencies, and any special escrow instructions)

DEPOSIT & PAYMENT TERMS

Deposit Amount: $ to be delivered as set forth below.

Payment Method (select all applicable)

Check Wire Transfer Cashier's Check Other

Payment Schedule / Due Date:

Late Fee: assessed on any unpaid portion after five (5) business days following the due date.

ESCROW AGENT

Escrow Agent Name Escrow Agent Address Escrow Agent Contact

APPLICATION & DISPOSITION OF DEPOSIT

Application to Purchase Price: The deposit shall be credited toward the Purchase Price at closing unless otherwise agreed in writing by Buyer and Seller.

Release; Refund; Forfeiture: The escrow agent shall release the deposit only in accordance with the written joint instruction of Buyer and Seller, a final order of a court of competent jurisdiction, or pursuant to the provisions of the purchase agreement. If the Buyer defaults in accordance with the purchase agreement, the Seller may be entitled to the deposit as liquidated damages as set forth in the purchase agreement or as otherwise provided by law. If the Seller defaults, the deposit shall be returned to Buyer unless the parties agree otherwise in writing.

Interest: Any interest earned on the deposit while held in escrow shall be treated as follows:

TERM AND TERMINATION

This agreement becomes effective on the date set forth above and remains in effect until the earlier of: (a) the closing of the purchase transaction; (b) mutual written agreement of the parties to terminate; or (c) resolution of disputes as provided herein.

Notice Period for Termination: Either party may terminate this deposit arrangement by providing written notice to the other party and the escrow agent days prior to the proposed termination date, unless sooner termination is permitted under the purchase agreement.

CONFIDENTIALITY

The parties agree that the existence of this deposit, the amount thereof, and any non-public terms of the transaction are confidential and shall not be disclosed to third parties except as required by law, to the parties' professional advisors, or as necessary to effectuate the terms of this agreement and the purchase transaction.

REPRESENTATIONS AND WARRANTIES

Each party represents and warrants that it has the authority to enter into this Good Faith Deposit Form and that the person signing on its behalf is duly authorized to bind that party. Buyer represents that funds provided for the deposit are not derived from illegal activity.

GOVERNING LAW

This Good Faith Deposit Form shall be governed by and construed in accordance with the laws of the State of , without regard to conflict of laws principles.

ENTIRE AGREEMENT

This document, together with the referenced purchase agreement and any written escrow instructions executed by the parties, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior understandings, agreements, or representations, whether written or oral.

DISPUTE RESOLUTION

Any dispute regarding the deposit that cannot be resolved by the parties shall be submitted to binding arbitration in the county where the property is located, and the arbitrator's decision shall be final and binding. Costs of arbitration shall be allocated as determined by the arbitrator.

ADDITIONAL PROVISIONS

Additional Terms / Notes

Buyer - Printed Name:

By:

Date:

Seller - Printed Name:

By:

Date:

What the Real Estate Good Faith Deposit Form Is

The Real Estate Good Faith Deposit Form documents the earnest money a buyer delivers when making an offer on real property. It records the deposit amount, payment method, escrow agent or holder, conditions for return or forfeiture, applicable contingencies, and the effective date. The form establishes buyer intent, instructs escrow handling, and creates a contract record used at closing. In most U.S. transactions the form is part of the purchase agreement or an addendum and can be signed electronically under ESIGN and UETA when not precluded by statutory exceptions.

Why a Clear Deposit Form Matters

A properly completed Good Faith Deposit Form reduces disputes by documenting buyer intent and escrow instructions, protects seller rights, provides evidence for closing, and helps lenders verify funds; it also supports electronic signing when ESIGN and UETA criteria are satisfied.

Who Typically Completes and Relies on This Form

Typical participants include buyers, sellers, listing and buyer agents, escrow officers, and mortgage lenders involved in the real estate transaction.

Homebuyers — supply deposit, sign form, and confirm payment method promptly.
Listing agents — collect deposit info, deliver funds to escrow, and document receipt.
Escrow officers — hold funds per instructions, manage release conditions and accounting.

Use of the form reduces misunderstandings at closing and creates a clear audit trail for parties and title companies.

Primary Roles Involved

Buyer

The individual or entity making the offer and providing earnest money. The buyer must provide accurate legal name, identification where required, the deposit amount, and clear payment instructions; errors or missing signatures can delay closing or risk forfeiture under contract terms.

Escrow Officer

A neutral custodian—often a title company or attorney—who receives and holds funds per contract instructions. The escrow officer documents receipt, follows disbursement rules on closing or default, and maintains accounting records required by state escrow regulations.

Essential Elements of a Professional Deposit Form

A complete Real Estate Good Faith Deposit Form clearly identifies amount, payee, holder, contingencies, signature blocks, and release conditions to prevent ambiguity and support timely closing.

Deposit Amount

Specify the exact dollar amount including cents, and indicate whether it represents a percentage of the purchase price or a fixed sum to avoid calculation disputes at closing.

Payment Method

Record whether the deposit is by wire, check, cashier's check, or ACH; include payer name, bank reference, and instructions for verification of cleared funds before applying to closing.

Escrow Holder

Name the escrow company, title firm, or attorney holding funds, provide contact details, and include account or trust identifiers plus explicit disbursement instructions tied to contract conditions.

Return Conditions

Define precise conditions for return or forfeiture of earnest money, including contingency expirations, financing denial, inspection failures, and buyer default with timelines for release.

Contingencies

List applicable contingencies such as inspection, financing, and appraisal with clear deadlines and procedures for removal, extension, or cure to avoid later disagreement.

Signatures

Provide signature blocks for buyer and seller with printed names and dates; indicate whether witnesses or notarization are required by state law and whether electronic signatures are permitted.

Step-by-Step: Completing the Form

Follow these sequential steps to complete the Good Faith Deposit Form accurately, confirm escrow instructions, and document signatures to minimize closing delays and disputes.

01

Gather Information: Collect buyer and seller names, property address, and payment details.
02

Enter Amount: Fill deposit amount and payment date using MM/DD/YYYY format.
03

Assign Holder: Specify the escrow agent and account details precisely.
04

Sign and Deliver: All parties sign; deliver funds and obtain a receipt from escrow.

Common Online Workflow Settings

Below are common workflow settings to configure when preparing an online Good Faith Deposit Form for e-signature, escrow routing, and audit trail capture.

Field	Configuration
Signature Authentication	Email link plus optional SMS code or KBA for higher assurance.
Deposit Amount Field	Currency format with two decimals and validation to prevent typos.
Date Field Format	Use MM/DD/YYYY and require completion to lock effective date.
Conditional Release Clause	Set conditional fields to route escrow release upon contract milestones.

How Electronic Submission and Escrow Handling Work

The following sequence describes how electronic submission, escrow holding, and conditional release of a good faith deposit typically work in practice.

Upload Document: Sender uploads the completed form and assigns signature fields.
Place Fields: Add signature, date, and amount fields and any conditional logic.
Send to Signer: Signer receives secure link and authenticates before signing.
Escrow Confirmation: Escrow holder acknowledges receipt, records funds, and provides receipt.

Platform and Integration Considerations

Ensure your platform supports secure e-signatures, a detailed audit trail, and common real estate integrations before sending the deposit form electronically.

Integrations: Salesforce, Microsoft 365, NetSuite
Formats: PDF, DOCX, HTML supported
Authentication: Email, SMS code, KBA options

Security and Compliance Snapshot

Encryption: AES-256 at rest; TLS 1.2/1.3

Audit Trail: Timestamps, IP address, and actions

HIPAA: BAA required for PHI

ESIGN/UETA: Meets legal e-signature standards

Access Controls: Role-based permissions and logs

Data Residency: Flexible storage, U.S. options

Common Preparation Pitfalls

Using an incorrect payee or escrow holder name frequently causes banking rejections and delays release of earnest money during closing.
Omitting essential dates such as the effective date or contingency deadlines creates ambiguity about performance windows and may forfeit contractual rights.
Failing to initial changes or attach agreed addenda can render the deposit instruction contested or unenforceable in dispute resolution.
Relying on handwritten checks without verified deposit confirmation increases risk; always obtain a receipt and record of cleared funds for closing.

Penalties, Risks, and Consequences

Deposit Forfeiture: Buyer may lose funds

Delay in Closing: Missing deposit delays closing

Escrow Misapplied: Funds sent to wrong holder

Tax Reporting: Possible withholding or reporting

Signature Invalidity: Improper signature may void

Legal Disputes: Contract claims and litigation

Illustrative Use Cases and Outcomes

Real-world examples show how a clear deposit form speeds closings, prevents disputes, and supports remote signing across devices.

Martin Properties

Martin Properties switched to electronic deposit forms to process offers without in-person meetings and to centralize documentation.

Signatures completed on mobile or offline devices.
The firm reports consistent compliance, secure storage, and faster turnaround on earnest money handling, which reduced manual follow-up and improved closing predictability.

Optica Ventures

Optica Ventures adopted a standardized Good Faith Deposit Form to simplify investor and tenant transactions across multiple properties.

Interface is simple for team and customers.
Standardization reduced processing errors, made deposit reconciliation routine, and allowed the operations team to track receipts and clear funds efficiently during closing workflows.

eSignature Pricing and Feature Comparison

High-level comparison of starting prices and select features among common eSignature vendors for managing Good Faith Deposit Forms.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Key Deadlines and Timing Expectations

Understand these typical deadlines for deposit payment, contingency removal, closing, and recording to prevent disputes and ensure timely disbursement.

Deposit Delivery Deadline:

Commonly 24–72 hours after contract acceptance; follow the contract term.

Contingency Expiration:

Per contract dates; inspection or finance contingency must be removed by deadline.

Closing Date:

Set in the purchase agreement; deposit funds applied at closing.

Recording/Transfer:

Deed recording occurs after closing at the county recorder's office.

Accounting Retention:

Keep deposit records for at least three years after closing.

Frequently Asked Questions

Answers to common questions about completing, signing, and resolving issues related to a Real Estate Good Faith Deposit Form.

Need help? Contact support

Is the form legally binding?
Yes. A properly executed Good Faith Deposit Form functions as part of the contract; electronic signatures are enforceable under ESIGN (15 U.S.C. §7001) and UETA where adopted when intent, consent, attribution, and retention are established.
Can I use electronic signatures?
Generally yes. ESIGN and UETA permit electronic signatures for most real estate-related documents, though a small set of exceptions may require wet-ink signatures; confirm lender, title, or state-specific requirements.
Who should hold the funds?
Escrow companies, title firms, or licensed attorneys commonly hold earnest money. The form should name the holder and account; state escrow rules may apply and the holder must follow written disbursement instructions.
What if the buyer defaults?
Return or forfeiture of the deposit depends on the contract terms and applicable state law. Remedies often include seller retention or damage claims; consult counsel for contested releases or disputed entitlements.
Is notarization required?
Notarization is typically not required for a standalone deposit form, though deeds and certain instruments recorded at closing frequently need notarized acknowledgements; follow state recording requirements when documents are combined.
How do I cancel or revoke?
Revocation depends on contract language and contingencies. To revoke, provide written notice as required by the agreement, obtain mutual consent, or follow contractual remedies; maintain records of any electronic revocation under ESIGN standards.

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