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.
An Arizona Escrow Agreement for the Sale of Real Property and Deposit of Earnest Money is a legally binding document that outlines the terms and conditions for the sale of real estate in the state of Arizona, specifically regarding the depositing of earnest money into an escrow account. This agreement serves to protect both the buyer and the seller during the transaction process. In Arizona, there are a few different types of Escrow Agreements for the Sale of Real Property and Deposit of Earnest Money, depending on the specific requirements and circumstances of the transaction: 1. Standard Escrow Agreement: This type of agreement is commonly used in typical real estate transactions. It establishes the duties and responsibilities of the escrow agent, buyer, and seller. It includes provisions for the deposit and release of earnest money, contingency timelines, and the resolution of any disputes that may arise. 2. Residential Resale Escrow Agreement: Specifically designed for the resale of residential properties, this agreement includes additional clauses that address common issues encountered in such transactions. It may cover elements like homeowner association (HOA) disclosures, termite inspections, and compliance with local housing laws. 3. New Construction Escrow Agreement: When purchasing a newly constructed property, this specialized agreement stipulates the deposit and handling of earnest money during various construction phases. It typically includes provisions addressing potential delays, inspections, and the release of funds upon completion. All Arizona Escrow Agreements for the Sale of Real Property and Deposit of Earnest Money should include essential information such as the property details (address, legal description), purchase price, earnest money amount, and the names and contact information of the buyer, seller, and escrow agent. Additionally, it should outline the conditions under which the earnest money may be refunded or forfeited, as well as the timeline for completing the transaction. It is crucial for buyers and sellers in Arizona to carefully review and understand the escrow agreement before entering into any real estate transaction. Seeking advice from a qualified real estate attorney or professional is highly recommended ensuring compliance with state laws and to protect one's interests throughout the process.
