Oregon Escrow Agreement for Sale of Real Property with regard to Deposit of Earnest Money

• Category: Real Estate - Contracts - Escrow Agreements
• State: Multi-State
• Control #: US-02378BG
• Format: Word; PDF; Rich Text

Description

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 its services.

The Oregon Escrow Agreement for Sale of Real Property with regard to Deposit of Earnest Money is a legally binding document that outlines the terms and conditions of the sale of real property in Oregon. This agreement ensures a smooth and secure transaction by establishing guidelines for the deposit of earnest money. Under this agreement, earnest money refers to the initial deposit made by the buyer to demonstrate their serious intent to purchase the property. It serves as a form of security in case the buyer defaults on the agreement. The escrow agreement ensures that the earnest money is held by a neutral third party, called the escrow agent, until the transaction is completed or terminated. There are several types of Oregon Escrow Agreements for Sale of Real Properties with regard to Deposit of Earnest Money: 1. Standard Escrow Agreement: This is the most common type and is used for straightforward real estate transactions. It specifies the amount of earnest money to be deposited, the conditions for refund or forfeiture, and the timeline for the release of earnest money to the appropriate party upon the completion of the transaction. 2. Contingency Escrow Agreement: This type of agreement includes specific contingencies that need to be met before the earnest money can be released or refunded. Contingencies may include satisfactory property inspection, financing approval, or any other conditions agreed upon by the parties involved. 3. Non-refundable Escrow Agreement: In certain cases, the buyer may choose to make the earnest money deposit non-refundable. This means that if the buyer fails to complete the transaction for any reason, they forfeit the earnest money. The terms of such an agreement should be clearly stated to avoid any misunderstandings. 4. Multiple-offer Escrow Agreement: In situations where there are multiple buyers interested in the same property, a multiple-offer escrow agreement can be used. This agreement ensures that the earnest money from each buyer is held separately until the seller accepts one specific offer, at which point the earnest money from the unsuccessful buyers is promptly refunded. It is important to note that while these are common types of Oregon Escrow Agreements for Sale of Real Property with regard to Deposit of Earnest Money, there may be variations and additional clauses depending on the specific circumstances of the sale. It is advisable for buyers and sellers to consult with a qualified real estate attorney or agent when drafting or entering into an escrow agreement to ensure compliance with Oregon state laws and to protect their interests in the transaction.