Скачать или смотреть Form 50 Explained: How to Disburse Earnest Money in Washington Real Estate

In this episode of 15 Minute Forms, Jen Knox from The Madrona Group breaks down Form 50 – Authorization to Disburse Earnest Money, one of the most important tools Washington real estate brokers use when a transaction terminates and escrow must decide how to release earnest money.

Earnest money is a good faith deposit buyers make when entering into a purchase and sale agreement. In Washington, this deposit acts as a pre-determined damage amount should the buyer default. But when a deal falls apart — whether through a contractual termination or a buyer/seller dispute — agents must know the proper process to recover or release those funds.

That’s where Form 50 comes in.

In this video, you’ll learn:

What earnest money represents in a real estate transaction.

The difference between a termination (contractual right) and a rescission (just changing your mind).

How escrow handles earnest money as a neutral third party.

The 20-day timeline that starts when a demand for disbursement is submitted.

Why mutual agreement between buyer and seller is required on Form 50.

Real-world examples of earnest money disputes and how Form 50 resolves them.

The risks of going to interpleader action if parties don’t agree.

Why understanding Form 50 protects both your clients and your transactions.

Jen also explains how to avoid common mistakes, such as using the wrong form when terminating an agreement, and provides practical advice on how to properly instruct escrow so earnest money is released to the rightful party.

Whether you’re a new agent still learning the forms or an experienced broker looking for a refresher, this training will give you confidence in handling earnest money situations — and ensure you’re protecting your clients’ best interests.

📌 Want to dive deeper into Washington State real estate forms?
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CHAPTERS:
0:00 – Introduction to Form 50 and Earnest Money
1:20 – What Earnest Money Really Is in WA Real Estate
3:10 – How Escrow Holds and Manages Earnest Money
5:05 – Termination vs. Rescission: Key Differences
7:00 – The Earnest Money Disbursement Process
9:15 – The 20-Day Timeline and Escrow’s Role
11:30 – Common Termination Examples in Real Transactions
13:40 – Using Form 50 Correctly with Buyer and Seller Signatures
15:00 – Final Thoughts and Why Form 50 Protects Clients

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