Escrow Agreement
ESCROW AGREEMENT
This Escrow Agreement ("Agreement") is made and entered into on [Date], by and between [Your Name], located at [Your Company Address], hereinafter referred to as the "Escrow Agent", [Buyer's Name], located at [Buyer's Address], hereinafter referred to as the "Buyer", and [Seller's Name], located at [Seller's Address], hereinafter referred to as the "Seller".
1. Escrow Instructions
1.1 The individual or entity acting as the Buyer, along with the individual or entity acting as the Seller, both formally issue an instruction to the person or party acting as the Escrow Agent. This instruction is for the Escrow Agent to take possession of, and maintain securely within escrow, a certain monetary amount. This amount is specifically set at five hundred thousand dollars, or $500,000.00. The length of time for which this money must be held in escrow is until such a point that the conditions outlined within this document are deemed to be adequately fulfilled.
1.2 The party serving as the Escrow Agent, under the guidelines presented in this Agreement, has expressed its agreement to hold the funds that have been placed in escrow. The funds will be meticulously managed according to the terms and conditions stipulated in this Agreement. The release of the funds held in escrow will strictly take place upon the Escrow Agent's receipt of a mutual agreement in written instructions from both parties involved, specifically the Buyer and the Seller. In the absence of these joint instructions, the funds may only be released under conditions that have been otherwise specified in the provisions of this Agreement.
2. Escrow Funds
2.1 The funds that are being held in escrow are stipulated to be in the currency of United States Dollars, often abbreviated as USD. These funds are to be placed into a distinct and separate account tailored specifically for escrow transactions. The maintenance of this escrow-specific account will be handled by the appointed escrow agent. This account will be situated within ABC Bank, which for this agreement will be referred to as the "Escrow Account".
2.2 The Buyer as well as the Seller have thus granted authorization for the Escrow Agent to proceed with the disbursement of the funds that are currently held in escrow. The understanding is that the disbursement will be carried out according to the instructions that have been issued as part of the terms included in this Agreement.
3. Conditions of Release
3.1 Upon meeting the following conditions, the funds that have been placed in escrow will be authorized and approved for release to the Seller:
(a.) Delivery of the purchased property located at 123 Main Street, as described in the sales contract between the Buyer and Seller.
(b.) Confirmation of receipt and acceptance of the property by the Buyer.
3.2 In the occurrence of the following enumerated conditions, the funds that have been kept in escrow will be released and therefore transferred to the Buyer:
(a.) Failure by the Seller to deliver the property within the agreed-upon timeframe.
(b.) Any discrepancies or defects found in the delivered property that were not disclosed by the Seller.
4. Escrow Fees
4.1 The individual or entity referred to as the Buyer and the individual or entity identified as the Seller, by the terms outlined in this agreement, have reached a mutual understanding to remunerate the Escrow Agent. The agreed payment for the services provided by the Escrow Agent as detailed in this agreement is the cumulative sum of $500. This amount is specified as the escrow fees which both the Buyer and Seller are committed to paying.
4.2 The fees associated with escrow ought to be covered through a transfer of funds handled by the bank, and these specified charges become obligatory for payment instantaneously upon the formal implementation and enactment of this Agreement.
5. Dispute Resolution
5.1 Should there be any disagreement or issue that surfaces or is linked to this Agreement, it is agreed upon by all the involved parties that they would engage in sincere, honest negotiations aiming to settle the dispute in a peaceful, friendly manner.
5.2 If the parties involved in the dispute are unsuccessful in resolving their conflict through negotiation, they have both agreed that they will submit the dispute for mediation or arbitration by the laws of the mentioned State, Province, or Country.
6. Governing Law
6.1 This Agreement shall be governed by and construed following the laws of [State/Province/Country].
IN WITNESS WHEREOF, the parties hereto have executed this Escrow Agreement as of the date first above written.
[Your Name] (Escrow Agent)
[Date Signed]
[Buyer's Name]
[Date Signed]
[Seller's Name]
[Date Signed]
