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 receives a fee for their services.
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.
Oregon Escrow Agreement for Deposits to Fund Completion of Construction of Residential Property under Construction Contract with no Construction Loan An Oregon Escrow Agreement for Deposits to Fund Completion of Construction of Residential Property under a Construction Contract with no Construction Loan is a legally binding document that facilitates the secure handling and disbursement of funds between parties involved in the construction of a residential property in Oregon. This agreement operates as a safeguard mechanism, ensuring that the funds are used solely for the purpose of completing the construction project as outlined in the construction contract. Key Elements of an Oregon Escrow Agreement: 1. Parties involved: The agreement identifies the parties involved, including the property owner (referred to as the "Depositor"), the general contractor, and the escrow agent responsible for managing the funds. 2. Construction project details: The agreement outlines the specific details of the residential property under construction, such as the address, description, plans, and specifications. It also incorporates the construction contract, which includes milestones, timelines, and payment schedules. 3. Deposit amount and terms: The agreement specifies the deposit amount required from the Depositor to fund the construction project. It outlines the terms, such as whether the deposit is made upfront or in installments, and any applicable interest rates or penalties. 4. Disbursement conditions: The agreement establishes the conditions under which the funds will be disbursed to the general contractor. These might include meeting specific milestones, inspections, or other agreed-upon criteria to ensure the progress and quality of the construction work. 5. Escrow agent's responsibilities: The agreement details the responsibilities of the escrow agent, which typically include receiving, holding, and disbursing the funds according to the terms outlined in the agreement. The escrow agent acts as an impartial third party, ensuring compliance with the agreement by both the Depositor and the general contractor. Types of Oregon Escrow Agreements regarding Deposits to Fund Completion of Construction of Residential Property under Construction Contract with no Construction Loan: 1. Partial completion escrow agreement: This type of agreement allows for the progressive disbursement of funds based on the completion of certain milestones or stages of the construction project. Funds are released in installments as the project progresses, providing a sense of security to both the Depositor and the general contractor. 2. Performance-based escrow agreement: In this type of agreement, funds are disbursed based on the satisfactory completion of specific performance targets. These targets could include achieving certain quality benchmarks, passing inspections, or meeting specific construction deadlines. 3. Time-based escrow agreement: This agreement operates on a predetermined timeline, with funds being disbursed at regular intervals regardless of the construction progress. Time-based escrow agreements are typically used when the construction project has a fixed timeframe or when there is additional security available, such as other assets of the Depositor, to ensure the project's completion. Overall, an Oregon Escrow Agreement for Deposits to Fund Completion of Construction of Residential Property under a Construction Contract with no Construction Loan safeguards the financial interests of all parties involved and provides a framework for the successful completion of the construction project in compliance with the agreed-upon terms and conditions.
