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.
Puerto Rico Escrow Agreement for Sale of Real Property — Deposit of Estimated Purchase Prices Introduction: An escrow agreement is a legally binding contract designed to protect the interests of both the buyer and seller in a real estate transaction. In Puerto Rico, the Escrow Agreement for Sale of Real Property — Deposit of Estimated Purchase Prices establishes the terms and conditions regarding the deposit of estimated purchase prices in a secure escrow account until the completion of the property transfer. Key Terms and Conditions: 1. Parties Involved: The agreement identifies the parties involved in the transaction, including the buyer, seller, and escrow agent responsible for managing the funds. 2. Property Description: The escrow agreement provides a detailed description of the real property being sold, such as the address, lot number, and any other necessary identifiers. 3. Terms of Sale: It outlines the specific terms of the sale, including the purchase price, payment method, and any other relevant conditions agreed upon by both parties. 4. Deposit Amount: The agreement specifies the estimated purchase price deposit required from the buyer as a sign of good faith and commitment to the transaction. The deposit amount is typically a percentage of the total purchase price. 5. Escrow Account: A designated escrow account is established by the escrow agent, who will receive and hold the deposit funds until all conditions for the release of the funds are met. Types of Puerto Rico Escrow Agreements for Sale of Real Property: 1. Residential Property Escrow Agreement: This type of escrow agreement is used in residential real estate transactions, where the buyer intends to use the property as a primary residence or for personal use. 2. Commercial Property Escrow Agreement: Designed for commercial real estate transactions, this agreement applies when the property being sold is intended for business purposes, such as office spaces, retail stores, or industrial facilities. 3. Vacant Land Escrow Agreement: When the sale involves vacant land or undeveloped property, a specialized escrow agreement is used, taking into account any specific clauses related to land usage, environmental concerns, or potential development plans. 4. Condominium Escrow Agreement: Condominium escrow agreements are utilized when buying or selling a condominium unit, highlighting any specific regulations or obligations related to the condominium association. Conclusion: Puerto Rico escrow agreements for the sale of real property are essential tools in ensuring a smooth and secure transaction for both buyers and sellers. With different types of escrow agreements available, tailored to specific property types, parties involved can have peace of mind knowing their interests are protected until the property transfer is complete.
