South Dakota Agreement for Direct Payment of Taxes, Assessments, and/or Insurance and Waiver of Escrow to be held by Lender

• Category: Real Estate - Contracts
• State: Multi-State
• Control #: US-02130BG
• Format: Word; Rich Text

Description

An escrow account refers to an account held in the name of the borrower which is returnable to the borrower on the performance of certain conditions.

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.

The South Dakota Agreement for Direct Payment of Taxes, Assessments, and/or Insurance and Waiver of Escrow to be held by Lender is a legal document that outlines the terms and conditions for the borrower to directly pay their property taxes, assessments, and insurance premiums, instead of using an escrow account held by the lender. This agreement is commonly used in South Dakota, where borrowers have the option to manage their own payments for property-related expenses. By entering into this agreement, the borrower takes on the responsibility of making timely payments for taxes, assessments, and insurance directly to the respective entities. When drafting this agreement, it is important to include specific details such as the borrower's name, lender's name, property address, and loan number. The agreement should clearly state that the borrower will assume the responsibility of paying property taxes, assessments, and insurance and will do so directly to the appropriate parties. In addition, the agreement should mention the specific payment amounts and due dates for each expense, ensuring that the borrower understands the timing obligations. It should be noted that failure to make these payments on time may result in penalties or legal consequences. Furthermore, the South Dakota Agreement for Direct Payment of Taxes, Assessments, and/or Insurance and Waiver of Escrow to be held by Lender may have variations or additional provisions depending on the specific situation. For instance, there may be alternative agreements for commercial properties, residential properties, or different types of loans (e.g. fixed-rate, adjustable-rate). Overall, by utilizing this agreement, borrowers in South Dakota have the option to maintain control over their tax, assessment, and insurance payments. However, it is essential for both parties to fully understand their rights and responsibilities outlined in the agreement to ensure compliance and avoid any potential issues in the future.