Document background
The Real Estate Earnest Money Agreement is a crucial document in Nigerian property transactions that demonstrates a buyer's serious intent to purchase real estate by providing a security deposit. This agreement is typically used at the initial stages of property transactions, after preliminary negotiations but before the final sale agreement. It includes specific provisions required under Nigerian law, including compliance with the Land Use Act and local property regulations. The document outlines the amount of earnest money to be deposited, conditions for its refund or forfeiture, property details, purchase price, timeline for completion, and due diligence requirements. It serves as a preliminary contract that protects both parties' interests while the full purchase transaction proceeds, and is particularly important in the Nigerian real estate market where property transactions can be complex and time-consuming.
