An Earnest Money Gift Letter is commonly required when a family member or close relation provides funds towards a property purchase deposit in England and Wales. The document is essential for mortgage applications and property transactions where gifted deposits are involved. It provides crucial verification for lenders and compliance with anti-money laundering regulations. The letter typically includes details of the gift amount, relationship between parties, source of funds, and explicit confirmation that the money is a gift rather than a loan. This documentation helps protect all parties involved and ensures transparency in property transactions.

1. Date and Parties: Full names and addresses of gift giver and recipient

2. Property Details: Address and description of property being purchased

3. Gift Amount: Specific amount being gifted as earnest money

4. Relationship Declaration: Statement of relationship between gift giver and recipient

5. Source of Funds: Declaration of the legitimate source of gifted funds

6. Non-repayment Statement: Clear statement that the gift is not a loan and requires no repayment