PandaTip: There are three roles in this escrow agreement template: The Buyer, the Seller, and the Agent. Each of these individuals play an important role in the escrow agreement.
This escrow agreement is made and entered into on [Agreement.CreatedDate] between [Sender.FirstName] [Sender.LastName] (Seller) and [Purchaser.FirstName] [Purchaser.LastName] (Purchaser), collectively known as the “Parties..
The Seller and Purchaser have expressed an interest to enter into this escrow agreement for the sale and purchase of the property located at [Property.Address].
The Parties have appointed [Escrow.AgentName] (Escrow Agent) to hold $[Escrow.Amount] in accordance with the terms and conditions of the escrow agreement, listed below.
PandaTip: The template states that the Escrow Agent will hold the funds listed above until delivery of the purchased property is made. This ensures that the Seller delivers the product, and that the Purchaser pays for it.
Terms and Conditions
The Seller and Purchaser have agreed to appoint the Escrow Agent to hold the above amount for the term of this agreement.
Furthermore, the Escrow Agent is willing and able to accept such responsibilities as well as act in compliance with this escrow agreement in its entirety.
In the instance any disagreement shall arise, the Parties agree the Escrow Agent shall not be held liable for any costs, damages, or losses that may arise from duties performed.
Furthermore, unless written permission has been received from the Parties by the Escrow Agent then no releases or disbursements shall be made.
PandaTip: This section of the template limits the Escrow Agent’s responsibilities. They are simply charged with holding the agreed funds, and releasing them when the Purchaser and Seller authorize them to do so.
If such disagreement between the Seller and Purchaser does occur the Escrow Agent will have the right to be discharged from this agreement by turning all agreements and documentation over to the jurisdiction responsible for this agreement.
Any and all costs to the Escrow Agent from such proceedings shall be the responsibility of the Seller and Purchaser.
This agreement is for the benefit of the Escrow Agent, Seller and Purchaser.
Furthermore, all parties agree there are no beneficial results for any third parties nor will third parties be involved in any decisions for this escrow agreement.
All funds received with regard to this escrow agreement shall be deposited into a federally insured bank money market account.
Any fees due to the Escrow Agent, including shipping fees, at the time of disbursement request may be deducted from the escrow disbursement amount prior to disbursement.
PandaTip: This section of the template authorizes the Escrow agent to deduct any fees they are owed from the Escrow account.
The Escrow Agent will not be permitted to combine personal accounts with the escrow funds at any time during the period of this escrow agreement.
The Escrow Agent will hold any notifications and instructions they may receive as valid without the requirement to investigate or question the sender.
With written notice from both the Seller and the Purchaser the Escrow Agent will disburse the funds based on the instructions provided within such notice.
The written notice inclusive of directions for disbursement may be delivered in person or via facsimile.
Notification must be provided to the Escrow Agent no less than 24 hours before the disbursements scheduled delivery.
Under the following circumstances the Escrow Agent shall not be held liable or found at fault,
- For any omission or error by a party other than the Escrow Agent themselves.
- Any loss of funds directly related to the suspension, insolvency, or failure of the funds or the bank themselves.
- Any legal proceedings between the Purchaser and Seller
- Any and all interest accrued during the term of this Escrow Agreement shall be property of the Purchaser and shall be disbursed as so.
PandaTip: All three parties should sign this escrow agreement template. This ensures that they fully understand their roles and responsibilities.
By signing below all parties agree to have read and understand the terms and conditions outlined in this escrow agreement.