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.
North Dakota Escrow Agreement for Sale of Real Property and Deposit of Earnest Money is a legal contract that facilitates the smooth and secure transfer of real estate ownership in North Dakota, while protecting the interests of both the buyer and seller. In this agreement, the term "escrow" refers to a neutral third party — usually a licensed escrow agent or attorney — who holds the earnest money deposit until all defined conditions of the sale are met. The earnest money deposit is a good-faith payment made by the buyer to demonstrate their seriousness and commitment to the transaction. It is typically a percentage of the purchase price, which is negotiated between the buyer and seller. The escrow agreement outlines the terms and conditions under which the earnest money deposit will be held, the responsibilities of all parties involved, and the steps that need to be taken for the release or forfeiture of the funds. Some key provisions typically found in a North Dakota Escrow Agreement for Sale of Real Property and Deposit of Earnest Money include: 1. Identification of parties: The agreement clearly identifies the buyer, seller, and escrow agent involved in the transaction. 2. Property description: A detailed description of the real property being sold, including its legal description, address, and any associated easements or encumbrances. 3. Purchase price and earnest money deposit: The agreed-upon purchase price of the property and the amount of earnest money to be deposited by the buyer. 4. Conditions for release of earnest money: The agreement defines the conditions under which the earnest money deposit will be released back to the buyer or forfeited to the seller. 5. Title and closing requirements: The agreement may specify the necessary conditions for the transfer of title, including obtaining title insurance, completing inspections, and adhering to local laws and regulations. 6. Dispute resolution: If any disputes arise during the transaction, the agreement may stipulate the preferred method of resolution, such as mediation or arbitration. 7. Termination and default: The agreement outlines the rights and remedies available to both parties in the event of contract termination or default. It is worth mentioning that North Dakota may have specific variations or additional types of Escrow Agreements for the Sale of Real Property and Deposit of Earnest Money, such as commercial property escrow agreements, vacant land escrow agreements, or new construction escrow agreements. These variations may contain additional clauses or provisions specific to the type of property involved. To ensure compliance with North Dakota laws and to protect the interests of all parties involved in a real estate transaction, it is strongly advised to consult with a qualified attorney or escrow agent when drafting or executing an escrow agreement.
