The word “escrow” originally comes from the Middle English word “Escrowl” which translates to mean “scroll” essentially meaning a checklist. Since time immemorial, buyers and sellers used trusted third parties to hold money, important documents and deeds until the obligations of the parties were met.

The escrow agreement is a contract entered by two or more parties under which an escrow agent is appointed to hold in escrow certain assets, documents, and/or funds deposited by such parties until a contractual condition is fulfilled.

Escrow Agent will hold the security or asset of certain worth until the conditions mentioned in the agreement are fulfilled. Escrow agents will have to completely outline the terms and conditions for all the parties participating in the agreement.

𝐻𝑜𝑤 𝐸𝑠𝑐𝑟𝑜𝑤 𝐴𝑔𝑟𝑒𝑒𝑚𝑒𝑛𝑡𝑠 𝑊𝑜𝑟𝑘:
In an escrow agreement, one party—usually a depositor—deposits funds or an asset with the escrow agent until the time that the contract is fulfilled. Once the contractual conditions are met, the escrow agent will deliver the funds or other assets to the beneficiary. Escrow agreements are commonly used in different financial transactions—especially those that involve significant funds such as real estate or annuity model Contract delivery.

𝐴𝑛 𝑒𝑠𝑐𝑟𝑜𝑤 𝑎𝑔𝑟𝑒𝑒𝑚𝑒𝑛𝑡 𝑛𝑜𝑟𝑚𝑎𝑙𝑙𝑦 𝑖𝑛𝑐𝑙𝑢𝑑𝑒𝑠 𝑖𝑛𝑓𝑜𝑟𝑚𝑎𝑡𝑖𝑜𝑛 𝑠𝑢𝑐ℎ 𝑎𝑠:

👉The identity of the appointed escrow agent

👉Definitions for any expressions pertinent to the agreement

👉The escrow and detailed conditions for the release of these funds

👉The acceptable use of funds by the escrow agent

👉The duties and liabilities of the escrow agent

👉The escrow agent’s fees and expenses

👉The jurisdiction and venue in the event of a legal action

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