Escrow refers to a type of account in which the money, a mortgage or deed of trust, an existing promissory note secured by the real property, escrow "instructions" from both parties, an accounting of the funds and other documents necessary to complete the transaction by a date, is held by a third party, called an "escrow agent", until the conditions of an agreement are met. When the funding is complete and the deed is clear, the escrow agent will then record the deed to the buyer and deliver funds to the seller. The escrow agent or officer is an independent holder and agent for both parties who may receive a fee for their services.
This agreement is between a client and his attorney. This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
Title: Maryland Escrow Agreement for Sale of Real Property — Deposit of Estimated Purchase Prices Introduction: A Maryland Escrow Agreement for Sale of Real Property — Deposit of Estimated Purchase Prices is a legal document used in transactions involving the sale of real estate in the state of Maryland. It serves as a safeguard for both the buyer and seller by providing a mechanism to hold and disburse funds during the transaction process. This detailed description aims to explore the key aspects of this agreement while incorporating relevant keywords. 1. Purpose of the Agreement: The purpose of the Maryland Escrow Agreement for Sale of Real Property is to facilitate the secure handling and distribution of funds related to the sale of a property. It ensures that the parties involved (buyer, seller, and potential lenders) have a documented understanding of how funds will be deposited, held, and released during the transaction process. 2. Parties Involved: The agreement involves three primary parties: the buyer, the seller, and the escrow agent. The buyer is the individual or entity purchasing the property, the seller is the current owner, and the escrow agent is a neutral third party entrusted with handling the funds according to the agreement terms. 3. Types of Maryland Escrow Agreements: a. Standard Maryland Escrow Agreement: This type of agreement is the most common and is used in typical real estate transactions. It outlines the deposit and disbursement procedures for the estimated purchase price and specifies the conditions under which funds will be released. b. Contingency Escrow Agreement: In situations where the purchase is contingent on certain conditions or events (e.g., inspections, financing approval), a contingency escrow agreement may be employed. It provides provisions for the return of funds if the specified conditions are not met. c. Bulk Sales Escrow Agreement: This type of escrow agreement is utilized when multiple properties or a real estate portfolio is being sold. It involves handling a larger sum of money, and its terms may vary to accommodate the complexity of the transaction. 4. Deposit and Disbursement of Funds: The Maryland Escrow Agreement establishes the procedures for depositing and disbursing funds. The buyer typically deposits the agreed-upon purchase price into an escrow account managed by the escrow agent. The funds are held securely until specific conditions, stated in the agreement, are met. Upon fulfilling the conditions, the escrow agent releases the funds to the appropriate parties (seller, closing agent, lender) as outlined in the agreement. 5. Responsibilities of the Escrow Agent: The escrow agent acts as a neutral third party entrusted with safekeeping and distributing the funds according to the agreement's terms. They follow the instructions provided by the agreement, ensure compliance with legal requirements, maintain accurate records, and handle any necessary documentation during the process. Conclusion: A Maryland Escrow Agreement for Sale of Real Property — Deposit of Estimated Purchase Prices serves as a crucial document in real estate transactions, providing a structured framework for the secure handling of funds. By understanding the various types of Maryland escrow agreements and their respective functionalities, buyers and sellers can ensure a smooth and transparent transaction process while safeguarding their interests.
