DIY Legal Forms

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Escrow Agreement

1. Introduction. Agreement made [date] by [name], residing at [address] (Seller), [name], residing at [address] (Purchaser), and [name], with offices at [address] (Escrow Agent).

2. Purpose of Agreement. Simultaneously with the making of this Agreement, Seller and Purchaser have entered into a contract (Contract) by which Seller will sell to Purchaser the following property: [description of property]. The closing will take place on [date] at [hour] AM [PM] [time zone] at the offices of [name] located at [address] or at such other time and place as Seller and Purchaser may jointly designate in writing. Pursuant to the Contract, Purchaser must deposit ---------- dollars ($----------) as a down payment to be held in escrow by Escrow Agent.

3. Deposit of Escrow and Acknowledgment of Receipt. The ---------- dollars ($----------) down payment referred to in Paragraph 2 of this Agreement has been paid by Purchaser to Escrow Agent. Escrow Agent acknowledges receipt of ---------- dollars ($----------) from Purchaser by check, subject to collection.

4. Escrow Agent's Duties Upon Closing of Sale. If the closing takes place under the Contract, Escrow Agent at the time of closing shall pay the amount deposited with Escrow Agent to Seller or in accordance with Seller's written instructions.

5. Escrow Agent's Duties if Sale Does Not Close. If no closing takes place under the Contract, Escrow Agent shall continue to hold the amount deposited with Escrow Agent until receiving written authorization for its disposition signed by both Purchaser 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 Purchaser, or if an action or proceeding to determine Seller's and Purchaser's rights is not begun or diligently prosecuted, Escrow Agent is under no obligation to bring an action or proceeding to deposit the sum held by Escrow Agent in court, but may continue to hold the deposit.

6. Escrow Agent's Liability. Escrow Agent assumes no liability except that of a stakeholder. Escrow Agent's duties are purely ministerial and 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 as long as Escrow Agent acts in good faith. Seller and Purchaser release Escrow Agent from any act done or omitted in good faith in the performance of Escrow Agent's duties.

7. Escrow Agent's Rights. Escrow Agent may consult with counsel of Escrow Agent's choice and shall be fully protected in any action taken by Escrow Agent in good faith in accordance with counsel's advice. Escrow Agent need not defend any action or proceeding brought against Escrow Agent with respect to the subject matter or terms of this Agreement unless Escrow Agent receives a written request to do so signed by Seller and Purchaser and is indemnified to Escrow Agent's satisfaction against the cost and expense, including legal fees, of the defense. Escrow Agent shall not be required to institute any actions or proceedings. Escrow Agent shall be fully protected if Escrow Agent acts in accordance with any written instructions delivered to Escrow Agent that Escrow Agent believes have been signed by Seller and Purchaser.

8. Escrow Agent's Compensation. As full compensation for Escrow Agent's services, Escrow Agent shall be paid the sum of ---------- dollars ($----------) together with any unreimbursed costs and expenses incurred by Escrow Agent in carrying out Escrow Agent's duties. These sums shall become due when Escrow Agent fully discharges Escrow Agent's duties and may be deducted from the amount deposited with Escrow Agent before delivery of the deposit in accordance with the terms of this Agreement.






Escrow Agent

This Section for Notary:


STATE OF -------)

) ss: [date]

COUNTY OF ------)

On [Date] before me, [Name of Notary], notary, personally appeared [Name of Person(s) Involved], personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

Witness my hand and official seal.


[Name of Notary Public]

My commission expires: [date]