Earnest Money Receipt Template for India

The Earnest Money Receipt is a fundamental document in Indian property transactions, used when a prospective buyer makes an initial deposit to demonstrate their serious intention to purchase a property. It serves as a crucial intermediate document between initial property viewing and the final sale agreement. The receipt must comply with the Indian Contract Act, 1872, relevant state property laws, and stamp duty requirements. When drafting an Earnest Money Receipt, it's essential to include complete details of all parties, clear property description, precise payment information, and conditions for deposit application or refund. This document is particularly important in India's property market as it provides legal documentation of the buyer's commitment and the seller's acknowledgment, offering protection to both parties during the transaction process.

1. Receipt Header: Date, receipt number, and title of the document

2. Party Information: Full names, addresses, and contact details of both the receiver (usually seller/agent) and the payer (usually buyer)

3. Property Details: Complete description of the property for which earnest money is being paid, including address and any identifying details

4. Payment Details: Amount received in both figures and words, mode of payment (cash/check/draft), and payment reference numbers if applicable

5. Purpose Statement: Clear statement that the payment is earnest money for the specified property

6. Terms and Conditions: Basic conditions regarding the application of earnest money towards purchase price or conditions for refund/forfeiture

7. Signature Block: Spaces for signatures of both parties and witnesses, with dates