The Demand Letter For Release of Earnest Money is a crucial document in Indian business and property transactions where earnest money has been deposited but needs to be returned. This document is typically used when conditions for the return of earnest money have been met, when a transaction has fallen through, or when contractual obligations warrant the return of the deposit. It serves as a formal mechanism for requesting the release of funds and can be used as evidence in legal proceedings if necessary. The letter must comply with Indian contract law requirements and should clearly state the grounds for demanding the return of the earnest money, including relevant transaction details, amount involved, and timeline for response. This document is particularly important in real estate transactions but applies to any situation where earnest money has been deposited as part of a business deal or agreement.

1. Sender's Details: Complete name and address of the person/entity demanding the earnest money

2. Date: Current date of the demand letter

3. Recipient's Details: Complete name and address of the person/entity holding the earnest money

4. Subject Line: Clear indication that this is a demand for release of earnest money with reference numbers

5. Transaction Reference: Details of the original transaction including date, amount, and purpose of the earnest money deposit

6. Grounds for Release: Clear explanation of why the earnest money should be released

7. Demand Statement: Formal demand for the release of the specified amount

8. Payment Instructions: Details of how the earnest money should be returned including bank details if applicable

9. Timeline: Specific deadline for the release of funds

10. Closing: Professional closing with signature block and contact information