What Is Escrow Closing Agreement?One of the most important documents that come into picture at the time of opening of escrow is escrow closing agreement. An escrow closing agreement is a legal document or contract between a seller and a buyer that contains the names of the seller, the buyer and their escrow agent. The agreement is duly signed by these parties, and contains the terms of closing of escrow. The agreement contains the clause of down payment made by the buyer to purchase the property called escrow deposit. According to the terms of agreement, the escrow agent accepts and deposits the funds in a specific account called escrow account. The date of the closing of escrow is clearly mentioned in escrow closing agreement as pre-decided by both parties. The terms and conditions of the agreement are the guidelines which are followed by all the parties. It is essential that the agreement should be clear and complete to prevent the occurrence of any difficulties in the future. The parties involved in an escrow agreement are known as escrow beneficiaries. The escrow closing agreement contains information and instructions with a view to creating an understanding among escrow beneficiaries about escrow deposits and documents of the property. In case of any dispute among the escrow beneficiaries, the instructions of escrow will work as regulations, and will be followed by the escrow agent for the settlement of dispute. At the time of escrow closing, when all conditions of escrow are fulfilled, the escrow agent will hand over the deposits to the seller. And, in the same manner, he will transfer the property to the buyer, as stated in the agreement. And, if due to any reasons, the closing do not take place, then, according to the contract, escrow agent will hold the deposits with himself. The escrow agent will transfer the deposits to the seller after he receives a written authorization from both the parties. If no written authorization is received by the escrow agent, he will continue to hold the funds until the settlement between the seller and the buyer takes place. The escrow agent has to fulfill his duties as described in the agreement. He cannot do anything which is not described as his responsibility. At the same time, he cannot shy away from his duties once he has signed the agreement. Further, he cannot control the actions of escrow beneficiaries, and is not responsible for any negligence of their duties. But, he is liable for any misconduct done by him, and will be duly questioned for that. The agreement includes, among other things: complete names, address, and social security numbers, if any, of the escrow beneficiaries. For all the parties involved in the transaction, it is vital to prepare an escrow closing agreement after the considerations of all important requirements to reach the escrow closing on time. |