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.
A Utah Escrow Agreement regarding Deposit to Fund Completion of Construction of a Residential Property under a Construction Contract with no Construction Loan is a legal document that outlines the specific terms and conditions for handling funds during the construction process. It provides protection and ensures that all parties involved are in compliance with the agreed-upon terms. This agreement is particularly relevant for property owners, contractors, and escrow agents involved in the construction project and can be named based on specific circumstances. Here are some examples of different types of Utah Escrow Agreements: 1. Utah Full Deposit Escrow Agreement: This agreement type requires the property owner to deposit the full amount needed for the completion of the construction project into an escrow account. The funds are then released to the contractor based on predefined milestones or completion stages. 2. Utah Progressive Deposit Escrow Agreement: In this type of agreement, the property owner deposits funds into the escrow account in installments throughout the construction process. Each deposit is released to the contractor upon completion of specific project milestones. 3. Utah Performance-Based Deposit Escrow Agreement: This agreement type is based on the contractor's performance and completion of agreed-upon tasks. The property owner deposits funds into the escrow account as the contractor meets specific criteria or achieves certain project objectives. 4. Utah Hold back Deposit Escrow Agreement: This agreement includes the depositing of funds into the escrow account, along with a predetermined hold back amount. The hold back amount is retained by the escrow agent until all aspects of the construction contract are completed to the property owner's satisfaction. Regardless of the specific type of Utah Escrow Agreement, it typically covers key aspects such as the deposit amount, disbursement criteria, escrow agent's responsibilities, timelines, and dispute resolution procedures. It serves as a binding legal contract that safeguards the interests of all parties involved in the construction of a residential property without relying on a construction loan.
