VIEWS: 4,322 PAGES: 4 CATEGORY: Real Estate POSTED ON: 11/24/2009
Escrow Agreement: Escrow Agreements are a tri-partite agreement under which a buyer agrees to deposit a down payment for the purchase of a property to the escrow agent and the escrow agent undertakes to seller and the buyer that he will release or dispose the escrow funds in certain circumstances (as set out in the agreement) such as closing. The escrow agent holds the monies until the conditions of an agreement are met. When the funding is complete and the deed is clear, the escrow agent will then record the deed to the buyer and deliver funds to the seller.
ESCROW AGREEMENT This Escrow Agreement (the “Agreement”), dated as of the ___ day of ______________, 20___, between ______________________________________________ (the “Buyer”), ______________________________________________ (the “Seller”), and ____________________of _______________________ (hereinafter referred to as “Escrow Agent”). WITNESSETH WHEREAS, Seller and Buyer have entered into that certain Contract for the Sale and Purchase of Real Estate dated the ___ day of ______________, 20___ the (“Contract”_ , as to the sale of property (“Property”) located at the following address: ______________________________________________________________; and WHEREAS, this Agreement is to be construed together with the Contract; and WHEREAS, Seller and Buyer are desirous and willing to consummate the closing of the transaction contemplated by the Contract in accordance with the terms and provisions of this Agreement; and WHEREAS, pursuant to Clause _________ of the Contract, Buyer and Seller have appointed Escrow Agent to hold a portion of the Purchase Price (as defined in the Contract) in the amount of ____________________________________ Dollars ($__________)(the “Escrow Funds”), which sum will be held in accordance with the terms of this Agreement and the Contract. NOW, THEREFORE, in furtherance of the transaction contemplated by the Contract, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby covenant and agree as follows: 1. Seller and Buyer hereby appoint the Escrow Agent to hold the Escrow Funds, and the Escrow Agent accepts such designation and appointment and agrees to act in accordance with the terms of this Agreement and the Contract. It is hereby expressly understood and agreed that in the event of a conflict in the terms of this Agreement and those of the Contract, the terms of this Agreement shall control. 2. In accordance with the Contract, Buyer must deposit $____________ (“Escrow Funds”). This amount will be considered a down payment on this account, and will be held in escrow by Escrow Agent. The $ _____________ down payment referred to above has been paid to Escrow Agent by Buyer. Escrow Agent acknowledges receipt of $ __________ from Buyer by check, subject to collection. Seller and Buyer agree (a) Escrow Agent assumes only the liability of a stakeholder. The Escrow Agent shall incur no liability to anyone except for acts in bad faith willful misconduct, or gross negligence. All parties excuse and release the Agent for acts done or omitted in good faith; (b) that no releases or disbursements shall be made hereunder except upon joint written instructions from both Seller and Buyer or their successors or assigns. 3. Escrow Agent shall release and disburse the funds held in escrow upon and in accordance with the written instructions signed by both Buyer and Seller. Said written instructions may be given in duplicate counterparts and by facsimile. Escrow Agent shall have the right to deduct Escrow Agent’s unpaid attorney’s fee including the Escrow Agreement Fee and any costs Escrow Agent has incurred for overnight delivery charges or wire transfer fees from the funds held prior to disbursement. Escrow Agent shall be entitled to rely upon the instructions and other matters covered thereby, and shall not be required to investigate the authority of the person executing and delivering such instructions, or otherwise verify the accuracy of the statements of information presented therein. 4. At closing, the Escrow Agent will pay the amount deposited to the Seller or in accordance with Seller's instructions. Subsequently, the Escrow Agent will make the necessary transfer of title to the said property to the Buyer. If there is no closing in accordance to Contract, the Escrow Agent shall withhold the Escrow Funds received until he or she receives joint written instructions signed by both parties regarding the disposition of the monies. If Escrow Agent does not receive proper instructions signed by both parties, the Escrow Agent may either bring action or proceedings to determine the correct disposition of the Escrow Funds or the Escrow Agent may continue to hold the Escrow Funds. The Escrow Agent is under no obligation to bring an action or proceeding to determine the disposition of the monies. 5. Escrow Agent will not commingle Escrow Funds received by it in escrow with funds of others and shall deposit such funds in a separate escrow account with a federally insured bank. 6. Escrow Agent sh
Pages to are hidden for
"Escrow Agreement"Please download to view full document