Earnest Money and Down Payments in OREF Sale Agreements

In Section 1 of the OREF Sale Agreements, buyers identify their offered purchase price, earnest money deposit, balance of the down payment, and remaining balance due.  

Remember, earnest money is part of the buyer’s total down payment, unless forfeited due to a breach of the Agreement. To calculate the Balance of Down Payment, start with the total down payment shown in the lender’s pre-approval letter and subtract the earnest money being offered. The remaining amount is what should be entered as the Balance of Down Payment in the Sale Agreement. 

Find the versions of our sales agreements in our library.

All comments and responses from OREF or its staff, managers, and volunteers are non-legal opinions made for general purposes. Each Forms subscriber must rely solely upon their Principal broker or personal legal counsel for specific advice and instruction. You and your client should independently confirm that the Form(s) you use are legally suitable for the purposes intended and that they are current with respect to all laws and regulations.