What is an Escrow Agreement?

An Escrow Agreement is a legal contract wherein a third party (the escrow agent) holds and regulates payment of funds or assets required for two parties involved in a given transaction. The escrow agent releases the funds/assets once predetermined contractual conditions are met by both parties.

When is an Escrow Agreement typically used?

Escrow agreements are commonly used in real estate transactions (holding earnest money or closing funds), mergers and acquisitions (M&A) for purchase price adjustments or indemnification holdbacks, online sales of high-value goods, and intellectual property transfers.

What are the key responsibilities of an escrow agent?

The escrow agent's primary responsibilities are to safeguard the escrowed assets, strictly follow the instructions outlined in the Escrow Agreement, and disburse the assets only when all conditions are satisfied by the relevant parties. They act as a neutral intermediary.

What should be clearly defined in an Escrow Agreement template?

A good template should clearly define: the parties involved (buyer, seller, escrow agent), the assets to be held in escrow, the conditions for release of assets, the duties and liabilities of the escrow agent, fees for escrow services, and procedures for resolving disputes.

Professional Escrow Agreement for Secure Transactions

Agreement Information

Agreement Number:

Agreement Date:

Type of Escrow:

Total Transaction Value:

Escrow Amount:

Currency:

Escrow Period:

Interest Bearing:

Transaction Description:

Escrow Agent Information

Escrow Agent Name:

Agent Type:

Escrow Agent Address:

Primary Contact:

Contact Title:

Phone:

Email:

License/Registration Number:

Insurance Coverage:

Agent Qualifications:

Depositor Information

Depositor Name:

Depositor Type:

Depositor Address:

Primary Contact:

Contact Title:

Phone:

Email:

Tax ID/SSN:

Role in Transaction:

Beneficiary Information

Beneficiary Name:

Beneficiary Type:

Beneficiary Address:

Primary Contact:

Contact Title:

Phone:

Email:

Tax ID/SSN:

Role in Transaction:

Items Held in Escrow

Release Conditions

Specific Release Conditions:

Release Instructions:

Dispute Resolution

Dispute Resolution Method:

Arbitration Rules (if applicable):

Dispute Resolution Location:

Dispute Resolution Timeframe:

Escrow Agent's Role in Disputes:

Dispute Resolution Costs:

Special Dispute Terms:

Fees and Expenses

Escrow Agent Fee:

Escrow Fee Percentage:

Fee Payment Responsibility:

Additional Fees:

Interest Allocation (if interest bearing):

Expense Reimbursement:

Fee Structure Details:

Terms and Conditions

Escrow Termination:

Termination Conditions:

Default Procedure:

Amendment Process:

Special Terms and Conditions:

Legal and Regulatory

Governing Law:

Jurisdiction:

Regulatory Requirements:

Compliance Reporting:

Tax Reporting:

Record Retention:

Legal Compliance Notes:

Signature Information

Depositor Signatory:

Depositor Title:

Beneficiary Signatory:

Beneficiary Title:

Escrow Agent Signatory:

Agent Title:

Witness Required:

Execution Format:

Escrow Agreement Generator

Agreement Information

Escrow Agent Information

Depositor Information

Beneficiary Information

Items Held in Escrow

Release Conditions

Standard Release Conditions:

Dispute Resolution

Fees and Expenses

Terms and Conditions

Standard Terms:

Legal and Regulatory

Signature Information

Escrow Agreement Preview