An escrow is the deposit of a written instrument or something of value with a third person with instructions to deliver it to another when a stated condition is performed or a specified event occurs. The use of an escrow is most common in real estate sales transactions where the grantee deposits earnest money with the escrow agent to be delivered to the grantor upon consummation of the purchase and sale of the real estate and performance of other specified conditions.
The Kentucky Escrow Agreement for Sale of Real Property and Deposit of Earnest Money is a legally binding document that outlines the terms and conditions of a real estate transaction in the state of Kentucky. This agreement serves to protect both parties involved in the sale by establishing a neutral third party, known as the escrow agent, to hold and disburse the earnest money deposit. In Kentucky, there are several types of escrow agreements for the sale of real property and deposit of earnest money, including: 1. Standard Kentucky Escrow Agreement: This is the most common type of escrow agreement used in real estate transactions. It includes the details of the property being sold, the purchase price, and the amount of earnest money to be deposited. 2. Contingency Kentucky Escrow Agreement: If certain conditions need to be met before the sale can proceed, such as the buyer obtaining financing or completing a satisfactory home inspection, a contingency escrow agreement may be used. This type of agreement outlines the specific conditions that must be fulfilled for the sale to move forward. 3. Dual Agency Kentucky Escrow Agreement: In the case where the same real estate brokerage represents both the buyer and the seller, a dual agency escrow agreement may be used. This agreement outlines the obligations and responsibilities of the escrow agent in maintaining neutrality throughout the transaction. 4. New Construction Kentucky Escrow Agreement: When purchasing a newly constructed property, a specific escrow agreement may be used. This agreement takes into account the additional considerations and responsibilities associated with the construction process, such as timelines for completion and inspections. The Kentucky Escrow Agreement for Sale of Real Property and Deposit of Earnest Money typically covers important aspects such as the identification of the escrow agent, the amount of earnest money to be deposited, the conditions for the release of funds, the allocation of costs, and the dispute resolution process. It is essential for both buyers and sellers to carefully review and understand the terms specified in the escrow agreement before signing to ensure a smooth and legally compliant real estate transaction process in Kentucky.
