customized to each deal. Many times, the escrow agreement requires the escrow agent to be completely satisfied to release the funds and finish the deal.
ESCROW AGENT
There are no legal guidelines as to who each party chooses to be the escrow agent, but usually the title agent will resume that responsibility. That is because they are already familiar with the details of the deal and they have zero vested interest in it. They have no financial interest or pending payment for any service done. Sometimes, they also have enough experience to create parts of the closing documents that they are involved in.
THE AGREEMENT
First, each party comes to an agreement on what the escrow agent’s duties will be and what needs to be done to finish the escrow period.The funds are then released to that escrow agent. Unlike residential escrow, in commercial real estate the terms almost always differ throughout every deal. Still, there are a few common escrow provisions. There is almost always a clause ordering the escrow agent not to put the funds sent by the buyer in an account with any other money. There is usually a clause that appoints the title agent to act as the escrow agent, and waive any fees. There is also always a statement with written instructions detailing what each party has to do to release the money to the seller. Usually, the escrow agent won’t be responsible for verifying any part of the deal, besides releasing the finds when each party tells them it is approved. Almost always, the instructions to let the
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