Escrow Agreement - Real Property

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Escrow Agreement - Real Property Powered By Docstoc
					An escrow agreement is an arrangement whereby an independent and trusted third
party is used to receive and hold something of value until a certain condition has been
fulfilled or when performance of an obligation has occurred. This document sets forth
an agreement between a purchaser and vendor whereby physical possession of the real
property is transferred to the purchaser prior to the closing date; however the purchase
money and deed to the property are placed in escrow and will not be transferred until
the closing pursuant to the underlying Purchase and Sale Agreement. This escrow
agreement contains both standard escrow terms and customizable features.
             ESCROW AGREEMENT – REAL PROPERTY

RE:           Interim Occupancy of __________________________ [Instruction: Insert
              address of real property.] (the “Property”)
              By ______________[Instruction: Insert Purchaser name.] (the “Purchaser’)
              from ____________ [Instruction: Insert Seller name.](the “Vendor”)
              Pursuant to a Purchase and Sale Agreement dated __________ [Instruction:
              Insert Purchase and Sale Agreement date.]
              (the “Purchase Transaction”)



       IN CONSIDERATION of the mutual benefits arising out of this Agreement, the Vendor
and the Purchaser hereby agree to close the subject Purchase Transaction in escrow on the
following basis:




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1.     The date and time of closing are hereby extended to _______[Instruction: Insert closing
       time.] o’clock in the p.m., on the ______ day of ____________, 2_____ [Instruction:
       Insert date, month and year of closing] (the “Extending Closing Time”). Despite this
       extension all adjustments shall be made as of the date hereof. [Comment: In the
       alternative, previous sentence can be changed to have adjustments as of the date of
       closing. Parties should review original Purchase and Sale Agreement provisions to
       see if same was previously agreed upon and insert same; otherwise a determination
       should be made between the parties and entered here.]

2.     Subject to this Agreement, the Vendor hereby permits the Purchaser to take immediate
       possession of the Property and the Purchaser indemnifies the Vendor from all demands,
       claims, causes of action, loss and damages arising from the Purchaser’s possession,
       subject to the Vendor’s insurance obligations. [Comment: Parties should consider
       whether or not possession is subject to the payment of additional moneys by Purchaser, and
       also whether or not any such moneys shall be credited toward the purchase price.]
       Purchaser shall use the Property as a personal residence only and shall abide by all the laws,
       homeowners’ association rules, if any, and governmental regulations with respect to the use of the
       Property. Purchaser acknowledges that s/he is taking possession of the Property in “as is”
       condition, subject only to any other matters that may be set forth in the Purchase and Sale
       Agreement. [Comment: Parties should also note which party shall pay applicable Homeowner’s
       Association or similar fees, if any, during time of pre-closing possession.]



3.     The Purchaser’s attorney shall hold all documents delivered to him/her in escrow until
       the escrow has been released. The Vendor’s attorney shall hold all moneys paid and/or
       documents delivered to him/her in escrow until the escrow has been released. Any
       documents delivered or monies previously paid pursuant to the Purchase and Sale
       Contract shall be subject to the escrow provisions contained therein. With respect to any
       documents delivered or moneys paid hereunder, in the even either party gives written to
       either Purchaser’s attorney or Vendor’s attorney, as the case may be (when referred to
       herein, either such party may be called “Escrowee”, and same shall refer to either or both,
       as the case may be), demanding payment of the moneys held or documents delivered
       hereunder, such Escrowee shall give prompt notice to the other party of such demand.
       For purposes of this paragraph, notice shall mean that notice set forth in the Purchase and
       Sale Agreement, and if no such notice provision shall be set forth therein, same shall
       mean notice in writing and either (a) sent by either of the parties hereto or by their
       respective attorneys who are hereby authorized to do so on their behalf or by the
       Escrowee, by registered or certified mail, postage prepaid, or (b) delivered in person or
       by overnight courier, with receipt acknowledged, to the respective addresses given in this
       contract for the party and the Escrowee, to whom the notice is to be given, or to such
       other address as such party or Escrowee shall hereafter designate by notice given to the
       other party or parties and the Escrowee pursuant to this paragraph. Each notice mailed
       shall be deemed given on the third business day following the date of mailing the same,
       except that any notice to Escrowee shall be deemed given only upon receipt by Escrowee
       and each notice delivered in person or by overnight courier shall be deemed given when
       delivered,



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        If Escrowee does not receive notice of objection from such other party to the proposed
        payment of moneys or delivery of documents within 10 business days after the giving of
        such notice, Escrowee 
				
DOCUMENT INFO
Description: An escrow agreement is an arrangement whereby an independent and trusted third party is used to receive and hold something of value until a certain condition has been fulfilled or when performance of an obligation has occurred. This document sets forth an agreement between a purchaser and vendor whereby physical possession of the real property is transferred to the purchaser prior to the closing date; however the purchase money and deed to the property are placed in escrow and will not be transferred until the closing pursuant to the underlying Purchase and Sale Agreement. This escrow agreement contains both standard escrow terms and customizable features.
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