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.
Wisconsin Escrow Agreement for Sale of Real Property and Deposit of Earnest Money is a legally binding contract that outlines the terms and conditions for depositing earnest money in real estate transactions in the state of Wisconsin. This agreement serves as a safeguard to protect both the buyer and seller during the sale of a property. One type of Wisconsin Escrow Agreement is the Standard Wisconsin Real Estate Offer to Purchase Form. This form includes provisions for earnest money deposit, specifying the amount to be deposited and the timeline for doing so. It also outlines the conditions under which the earnest money may be refunded or forfeited. Another type of escrow agreement is the Wisconsin Contract for Deed Form. This agreement is used in situations where the buyer is financing the purchase directly with the seller, without involving a bank or mortgage lender. The contract outlines the terms of the sale, including the deposit of earnest money into an escrow account. The Wisconsin Escrow Agreement for Sale of Real Property and Deposit of Earnest Money typically includes the following key sections: 1. Parties: Identifies the buyer, seller, and escrow agent involved in the transaction. 2. Property Description: Provides a detailed description of the real property being sold, including its address, legal description, and tax parcel number. 3. Earnest Money Deposit: Specifies the amount of earnest money to be deposited by the buyer and the timeline for making the deposit. It also states where the earnest money will be held in escrow. 4. Escrow Instructions: Outlines the instructions for the escrow agent, including how the earnest money should be handled, disbursed, or refunded in various scenarios. 5. Contingencies and Conditions: Details any contingencies or conditions that must be met for the sale to proceed, such as a satisfactory home inspection or securing financing. 6. Dispute Resolution: Describes the procedures for resolving disputes that may arise during the escrow period, such as mediation or arbitration. 7. Closing and Distribution: States the expected closing date and provides instructions on how the earnest money will be disbursed at closing, including any adjustments or credits to the purchase price. It is crucial for both buyers and sellers to thoroughly review and understand the terms of the Wisconsin Escrow Agreement for Sale of Real Property and Deposit of Earnest Money before signing. Seeking legal advice from a qualified attorney or real estate professional is highly recommended ensuring compliance with Wisconsin state laws and to protect one's interests throughout the real estate transaction process.
