Earnest Money Holding Agreement

If Mira Law LLC (“Mira Law”) is holding earnest money (“EM”) in connection with your upcoming real property closing transaction, Mira Law agrees to hold and/or apply the EM subject to the following conditions:

  1. At Closing:
    Upon closing, the EM shall be applied to the closing statement and credited to the appropriate party.

  2. If the Transaction Does Not Close:
    a. The buyer and seller (“Parties”) must execute a termination and release agreement (“Termination”) clearly stating that the sales contract is terminated and indicating which party shall receive the EM.
    b. Upon receipt of a fully executed Termination, Mira Law will return the EM, less any deductions outlined below.

  3. If the Parties Do Not Agree on Distribution:
    a. If the Parties fail to execute a Termination, Mira Law will review the contract and make a good faith determination as to which party is entitled to the EM, based on the terms of the purchase and sale agreement.
    b. Mira Law will notify the Parties of its decision via the contact information provided in the agreement. Notice by email to the addresses on file shall be deemed received.
    c. A Party will have five (5) business days from the date of notice to submit a written objection.
    d. If no objection is received, Mira Law will distribute the EM as stated in the notice.
    e. If an objection is received and presents a legitimate claim, Mira Law will request the Parties once again execute a Termination. This process may repeat.
    f. If Mira Law determines that there is no legitimate dispute, it may distribute the EM accordingly. If a true dispute exists, Mira Law reserves the right to interplead the funds into court and allow the Parties to pursue their claims there.

  4. Deductions from Earnest Money:
    The Parties acknowledge and agree that the following deductions may be made from the EM prior to distribution:

    • Title search fee: $250.00

    • Wire or FedEx fee: $35.00

    • If the file is transferred to another law firm after substantial work has been performed, Mira Law may deduct its reasonable attorney’s fees in addition to the above costs.

    • If a dispute arises requiring Mira Law to analyze the contract, communicate extensively with the Parties, or interplead the EM into court, Mira Law may deduct reasonable compensation for its time and effort.

  5. Additional Provisions:

    • If the Parties are using a GAR contract and Mira Law has executed a Form F511 (Holder of Earnest Money), the Parties agree Mira Law may deduct its fees from the EM notwithstanding any contrary language in that form.

    • If the Seller is concerned about covering title costs from the EM, we recommend amending the contract to increase the EM deposit by $250.00.

    • The Parties agree to hold Mira Law LLC and its employees harmless for any decision or distribution made in accordance with this policy.

By allowing Mira Law to hold the EM funds or by tendering such funds to Mira Law, you are expressly agreeing to the terms and conditions outlined in this policy without exception.