Free Escrow Agreement Template Samples

To help you grow your business, we have created a fairly simple yet reliable Escrow Agreement Template in both Word and PDF versions so you can use it over and over.

What's in this model?

• Terms and Conditions

• Fees and Expenses

• Legal affairs

What is an Escrow Agreement?

An escrow agreement is a legally binding document between the parties involved. It usually includes a third party, called a non-participant or independent, who holds an asset or security of some value until the terms of the contract are met.

The contractor, partner or investor (grantor) contracts with the independent contractor (escrow contract) to carry out a project. In exchange for these efforts, the escrow contract allows the contractor to share in the profits of the business.

What is an escrow? 

Escrow is a process of transferring the interest in an asset or title to a third party, usually a non-participant, until the terms of the escrow are met. This may include specific expenses, specified results, or payment of the full value of the security or asset.

What are the types of escrow contracts?

Escrow contracts can be divided into four main categories:

The Asset Escrow Agreement

The asset escrow contract involves transferring the interest of an asset to a third party. As a result, the holder of the asset cannot exercise his power over it. In some cases, the owner of the asset may receive compensation for the temporary transfer of his interest. However, he is never authorized to exercise his rights over the transferred asset.

The title escrow agreement

The title escrow contract is a form of asset escrow contract. It consists in transferring the interest of a title to a third party, who is then authorized to exercise all the rights related to the title. In some cases, the owner of the asset may receive compensation for the temporary transfer of his interest.

The Rights Escrow Agreement

Rights escrow agreement is a special escrow agreement that includes an agreement between the asset owner and the third party in which the owner agrees to restrict the exercise of a right.

The means escrow contract

Means escrow contract is a special escrow contract that involves transferring the right of control of an asset or, what is the same, the power to control the asset to a third party.

How does the escrow contract work?

The escrow contract involves the only party (a depositor) depositing the funds until the conditions mentioned in the contract are met. A depositor deposits assets with the escrow agent and that agent delivers the funds or other assets to the beneficiary.

Important Terms

What should an escrow agreement contain?

An escrow agreement should include the following information:

• The full contact details and identity of the appointed depositary.

• Definitions of Terms Mentioned in the Agreement.

• Detailed information on blocked funds and the conditions for releasing these funds.

• The conditions of acceptable use of the funds by the receiver.

• Describe the duties and responsibilities of the escrow agent.

• Details of an escrow agent's fees and expenses.

• Mention the legal terms of the contract in case of legal action.