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.
Keywords: New Hampshire, escrow agreement, sale of real property, deposit, estimated purchase prices, types Description: A New Hampshire escrow agreement for the sale of real property is a legally binding contract that ensures the smooth and secure transfer of ownership from the seller to the buyer. This agreement includes provisions for the deposit of estimated purchase prices, offering protection and transparency for both parties involved in the transaction. There are several types of New Hampshire escrow agreements for the sale of real property that may be used depending on the specific circumstances of the transaction. These include: 1. Standard Escrow Agreement: This type of agreement is commonly used in New Hampshire real estate transactions. It outlines the terms and conditions of the sale, including the deposit of the estimated purchase price into an escrow account. 2. Conditional Escrow Agreement: In certain situations where there are contingencies or specific conditions that need to be met before the sale can be finalized, a conditional escrow agreement may be used. This agreement ensures that the deposit will only be released once these conditions are satisfied. 3. Time-Sensitive Escrow Agreement: When time plays a crucial role in the sale of real property, such as in cases involving multiple offers or foreclosure properties, a time-sensitive escrow agreement may be used. This type of agreement sets strict deadlines for the deposit of the estimated purchase price to ensure a timely completion of the transaction. Regardless of the type of New Hampshire escrow agreement used, the key component is the deposit of the estimated purchase price. This deposit is typically a percentage of the total purchase price, agreed upon by both parties, and is placed in an escrow account. The funds are held by a neutral third party, usually an escrow agent or attorney, until the closing of the transaction. The deposit of the estimated purchase price serves multiple purposes. Firstly, it shows the buyer's commitment to purchasing the property and provides the seller with reassurance that the buyer is financially capable. Secondly, it protects the buyer's funds by ensuring that they are securely held until the closing is completed. Lastly, it may be used as leverage in negotiations, as the release of the deposit is usually contingent upon the successful completion of the sale. In conclusion, a New Hampshire escrow agreement for the sale of real property is a vital tool for facilitating a smooth and secure transaction. It provides protection and transparency for both the buyer and seller, ensuring the deposit of the estimated purchase price is handled in a fair and ethical manner. Understanding the different types of escrow agreements available can help parties choose the most appropriate one for their specific needs.
