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Escrow Agreement
Secure funds, assets, or documents with this Escrow Agreement Template.
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Escrow Agreement Template
This Escrow Agreement (“Agreement”) is entered into on [Date], by and between:
Party A (Depositor): [Full Legal Name / Company Name]
Address: [Address]
Contact: [Phone, Email]
Party B (Beneficiary): [Full Legal Name / Company Name]
Address: [Address]
Contact: [Phone, Email]
Escrow Agent: [Full Legal Name / Company Name]
Address: [Address]
Contact: [Phone, Email]
Together referred to as the “Parties.”
1. Appointment of Escrow Agent
The Parties hereby appoint the Escrow Agent to hold the Escrow Property described in Section 2, subject to the terms of this Agreement. The Escrow Agent accepts this appointment.
2. Escrow Property
The Escrow Property consists of:
[Funds, securities, deeds, intellectual property, or other assets]
delivered to the Escrow Agent by Party A.
3. Deposit and Maintenance
The Escrow Agent shall maintain the Escrow Property in a separate account or secure facility.
The Escrow Agent shall not commingle Escrow Property with personal or business assets.
4. Release Conditions
The Escrow Property shall be released to Party B upon satisfaction of the following conditions:
[List conditions – e.g., completion of a real estate closing, delivery of goods, regulatory approval].
If conditions are not satisfied by [Deadline Date], the Escrow Property shall be returned to Party A unless otherwise agreed.
5. Fees and Expenses
The Parties shall jointly bear the Escrow Agent’s fees and expenses unless otherwise specified. Payment terms are outlined in Schedule A.
6. Duties and Responsibilities of Escrow Agent
The Escrow Agent shall:
Act in good faith and in accordance with this Agreement.
Not be liable for actions taken in reliance on written instructions believed to be genuine.
Be entitled to reimbursement for costs incurred in performing duties.
7. Dispute Resolution
In case of conflicting demands or disputes regarding the Escrow Property, the Escrow Agent may:
Retain the property until the dispute is resolved, or
Deposit the property with a court of competent jurisdiction.
8. Termination
This Agreement shall terminate upon the release of all Escrow Property in accordance with Section 4.
9. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of [State/Country].
10. Entire Agreement
This document constitutes the entire agreement among the Parties regarding the Escrow Property and supersedes prior discussions or agreements.
Signatures
Party A (Depositor): ___________________________ Date: _________
Name/Title: [Full Name, Title]
Party B (Beneficiary): _________________________ Date: _________
Name/Title: [Full Name, Title]
Escrow Agent: ________________________________ Date: _________
Name/Title: [Full Name, Title]
Details
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Escrow Agreement
ESCROW AGREEMENT FAQ
What is an Escrow Agreement?
An Escrow Agreement is a legal document in which parties appoint a neutral third party (escrow agent) to hold money, property, or documents until certain conditions of a deal are satisfied. Once the obligations are met, the escrow agent releases the assets to the appropriate party.
Why is an Escrow Agreement important?
It provides security and builds trust by ensuring neither party bears the risk of loss or fraud before obligations are fulfilled. It’s especially common in real estate, mergers and acquisitions, online transactions, and intellectual property deals.
When should you use an Escrow Agreement?
Use an escrow agreement whenever a transaction involves risk, significant sums of money, or complex conditions that must be met before completion. Common scenarios include property sales, software source code escrow, or settlement payments.
What should an Escrow Agreement include?
It should specify the parties, escrow agent, assets or funds being held, release conditions, fees, dispute resolution procedures, and governing law.
Who can act as an escrow agent?
Escrow agents are typically banks, law firms, or licensed escrow service providers, though in smaller transactions, a trusted neutral party can also serve this role.
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