Escrow agreement-Options

Prepare a clear escrow document prior to handing over your assets to other party

Escrow agreement is a legal document that includes all the terms and conditions of both the parties who are indulged in escrow. In this agreement, the assets, stock or money is kept near the third party by the owner. Later, this property or assets are delivered to another party, once the terms and conditions in the contract are met by the recipient party. Generally, this agreement mainly includes the escrow agent and other vital details. However, you can hire a professional attorney to prepare this agreement without any legal jargons. Moreover, this has to be read and signed by both the parties after reading the clauses in the agreement carefully. Most importantly, this agreement includes escrow funds, release funds, funds that can be used by the escrow agent, the roles and responsibilities of the escrow agent, fees and other expenses. Generally, this agreement is also referred to as bank-issued document which acts as a concrete proof that the assets or other funds are being deposited in the respective banks.

However, you need to include each and every point that is valid to include in the agreement to make it professional. Generally, missing of crucial points would incur loss to you. Undeniably, the document that meets the legal formalities is considered to be as escrow. Examples of documents that comes under escrow include bond, check, license, mortgage, deed, etc. Escrow agreement is a kind of contract. In this agreement, both the parties decides when the agreement should be unleashed before making deposits. Once the agreement is signed by both the parties, then the hold and release of money or documents cannot be alerted. However, the escrow agent (third party) has no right to change the terms and conditions in the agreement or stop the parties from changing, if they mutually agree to alter. The role of this agent is only to hold the deposit as mentioned in the agreement.

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Escrow Agreement For Option

THIS ESCROW AGREEMENT made and entered into this             day of                   , 20     ,
by and between

hereinafter called “First Party,” and

hereinafter called “Second Party,” and

hereinafter called the “Escrow Agent.”

WHEREAS, First Party entered into a certain Option Agreement (hereinafter “Option”) with Second Party for the sale by First Party and the purchase by Second Party of certain Real Property situate in the County of                   , and State of             ,  a copy of such Option is attached hereto and incorporated herein, and

WHEREAS, the proper performance of said Option requires the appointment of an Escrow Agent to hold certain papers,

NOW THEREFORE, First Party and Second Party hereby appoint Third Party as their Escrow Agent for the purpose of holding the legal documents hereinafter described upon the terms and conditions that are contained herein.

1. First Party hereby hands and delivers to said Escrow Agent a duly executed Bill of Sale and Warranty Deed to the following described Real Property, situate in the County of               and State of                    , to-wit:

which Deed conveys said property to Second Party in fee simple.

Second party hereby hands and delivers to Escrow Agent a duly executed Quitclaim Deed to the same property.

Both First and Second Party hand and deliver to Escrow Agent the original executed Option.

2. First Party hereby authorizes said Escrow Agent to hold such Deed until such time Second Party has exercised the Option and tendered the purchase price according to the terms of the Option, at which time First Party authorizes the Escrow Agent to deliver said Deeds, Option and Bill of Sale to Second Party.

In the event of default or expiration as described in said Option, Escrow Agent is directed to deliver to First Party the said Deeds, Bill of Sale and Option.   Second Party expressly agrees to hold Escrow Agent harmless and free from liability for delivery of documents in this manner.

3. In consideration of the Escrow Agent rendering the services mentioned herein, the Escrow Agent shall be paid by First and Second Parties, a fee of  $              .

4.  First Party and Second Party agree that said Escrow Agent shall in no case or event be liable for forgeries or false presentations of these instructions, and that in the event of any controversy between the parties to said Option, or any third person with respect to the subject matter of this escrow, its terms or conditions, the Escrow Agent shall not be required to determine the same or take any action in the premises, but may await settlement of any controversy by appropriate legal proceedings, or otherwise, as may be required by the Escrow Agent, notwithstanding any of the provisions of this Escrow Option to the contrary.  In the event of such controversy between the parties to this Escrow Option, the Escrow Agent shall not be held liable for interest or damage and shall not be responsible to make a determination of such controversy.

   IN WITNESS WHEREOF the parties have set their hands and affixed their seals the day and year first above written.

_____________________________
First Party

_____________________________
Second Party

I hereby accept the terms of the above escrow and acknowledge receipt of the documents described herein.

_____________________________           __________________________
Escrow Agent                                               Date