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.
North Carolina Escrow Agreement for Sale of Real Property — Deposit of Estimated Purchase Prices serves as a legally binding contract between the buyer, seller, and escrow agent involved in a real estate transaction in North Carolina. This agreement specifically focuses on the deposit of estimated purchase prices. Escrow is a commonly used mechanism to safeguard funds during real estate transactions, ensuring a smooth and secure process for all parties involved. The primary purpose of the North Carolina Escrow Agreement for Sale of Real Property — Deposit of Estimated Purchase Prices is to protect the interests of both the buyer and the seller by ensuring the secure handling of the funds involved in the transaction. It serves as a neutral third-party agreement that helps establish trust and confidence among all parties, minimizing potential risks and disputes. The agreement outlines the terms and conditions for the establishment of the escrow account, including the amount and timing of the deposit. It specifies the responsibilities of the escrow agent in handling and disbursing the funds according to the terms defined in the contract. This agreement also sets clear guidelines on the circumstances under which the funds may be released, returned, or forfeited, ensuring fair treatment for both the buyer and seller. There are various types of North Carolina Escrow Agreements for Sale of Real Property — Deposit of Estimated Purchase Prices, tailored for specific property transactions and parties involved. These may include: 1. Residential Real Estate Escrow Agreement: Designed for residential property transactions, this agreement focuses on the deposit of estimated purchase prices for houses, condominiums, town homes, or any other residential dwellings. 2. Commercial Real Estate Escrow Agreement: This type of agreement pertains to the deposit of estimated purchase prices for commercial properties, such as office buildings, warehouses, retail spaces, or industrial sites. The terms and conditions may vary depending on the nature and size of the commercial property involved. 3. Vacant Land Escrow Agreement: Specifically targeting transactions involving undeveloped land, this agreement outlines the procedures and requirements for depositing the estimated purchase prices for vacant lots, parcels, or large acreages. 4. New Construction Escrow Agreement: Tailored for real estate transactions involving the sale of newly constructed homes or buildings, this agreement addresses the unique aspects of depositing estimated purchase prices for properties under construction. Regardless of the specific type, all North Carolina Escrow Agreements for Sale of Real Property — Deposit of Estimated Purchase Prices share a common goal of ensuring the secure handling and fair disbursement of funds throughout the real estate transaction process in North Carolina.
