Escrow Agreement - Download Free Template
Escrow Agreement

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What are the key components typically included in an escrow agreement template?

An escrow agreement template generally includes critical components such as the parties involved (the depositor, the beneficiary, and the escrow agent), the description of the escrowed assets or funds, the conditions for release, timelines, fees, dispute resolution procedures, and the responsibilities of each party. These elements establish the framework for holding and releasing assets in a secure manner, often in transactions involving significant financial or legal obligations.

Is an escrow agreement template legally binding?

Yes, an escrow agreement template is a legally binding contract when properly executed and signed by all parties involved. It functions as a safeguard in transactions where assets or funds need to be held until specific conditions are met. Breaching the terms of an escrow agreement can lead to legal consequences, including disputes, damages, or the loss of escrowed assets.

Can I customize an escrow agreement template to fit the specific requirements of my transaction?

Yes, escrow agreement templates are often customizable to accommodate the unique needs and conditions of a transaction. Parties can negotiate and make amendments to the template to address specific release conditions, timelines, or other relevant details. However, it's crucial to ensure that any modifications are agreed upon by all parties, documented clearly within the agreement, and compliant with applicable laws and regulations. Consulting with legal professionals or escrow agents is advisable for complex changes or legal advice regarding the agreement.

An escrow agreement should include details of the parties involved, the property or assets held in escrow, the conditions for releasing the escrowed funds or assets, the responsibilities of the escrow agent, and the termination or dispute resolution procedures.

Escrow is a financial arrangement where a third party (the escrow agent) holds and manages assets, often money, on behalf of two other parties involved in a transaction. The funds or assets are released from escrow when certain conditions are met.

In banking, escrow refers to the process where a bank or financial institution holds and manages funds or assets on behalf of its customers until specific conditions or obligations are fulfilled.

The escrow method of payment involves placing funds in a secure account held by a trusted third party (the escrow agent) until certain conditions are met, typically in a transaction. Once the conditions are satisfied, the funds are released to the intended recipient.

Escrow accounts are subject to various regulations, which can vary by jurisdiction. In the United States, for example, the Consumer Financial Protection Bureau (CFPB) and state agencies often regulate escrow accounts to protect consumers in real estate transactions.



This Escrow Agreement (the "Agreement") is made and effective the [DATE],



BETWEEN: [YOUR COMPANY NAME] (the "Seller"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at:





AND: [BUYER NAME] (the "Buyer"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at:





AND: [ESCROW AGENT NAME] (the "Escrow Agent"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at:







Simultaneously with the making of this Agreement, Seller and Buyer have entered into a contract (the “Contract”) by which Seller will sell to Buyer the following property:


[Description of Property being Sold]




The closing will take place on [Date of Closing], at [Time of Closing] at the offices of [Name of the Office where Closing is taking place], located at [Address of the Office], or at such other time and place as Seller and Buyer may jointly designate in writing. Pursuant to the Contract, Buyer must deposit [Down Payment Amount] as a down payment to be held in escrow by the Escrow Agent.





If the closing takes place under the Contract, Escrow Agent at the time of closing shall pay the amount deposited with Agent to Seller or in accordance with Seller's written instructions. Escrow Agent shall make simultaneous transfer of the said property to the Buyer. If no closing takes place under the Contract, Escrow Agent shall continue to hold the amount deposited until receipt of written authorization for its disposition signed by both Buyer and Seller. If there is any dispute as to whom Escrow Agent is to deliver the amount deposited, Escrow Agent shall hold the sum until the parties' rights are finally determined in an appropriate action or proceeding or until a court orders Escrow Agent to deposit the down payment with it. If Escrow Agent does not receive a proper written authorization from Seller and Buyer, or if an action or proceeding to determine Seller's and Buyer's rights is not begun or diligently prosecuted, Escrow Agent is under no obligation to bring an action or proceeding in court to deposit the sum held, but may continue to hold the deposit. Escrow Agent assumes no liability except that of a stockholder. Escrow Agents duties are limited to those specifically set out in this Agreement. Escrow Agent shall incur no liability to anyone except for willful misconduct or gross negligence so long as the Escrow Agent acts in good faith. Seller and Buyer release Escrow Agent from any act done or omitted in good faith in the performance of Escrow Agents duties.





The [Down Payment Amount] down payment referred to herein above has been paid by Buyer to Escrow Agent.

Escrow Agent acknowledges receipt of [Down Payment Dollar Amount] from Buyer by check [Check Number on Down Payment Check] subject to collection.


Special provisions


[Describe any Special Provisions]


IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.








Authorized Signature Authorized Signature


Print Name and Title Print Name and Title










Authorized Signature


Print Name and Title