Escrow agreements are very common in commercial real estate transactions, and it’s important to know how to properly deal with these agreements. In this article, we are going to discuss five details to remember when dealing with escrow agreements.
Escrow Agreement Details
Below are five important details to remember when dealing with escrow agreements in a commercial real estate transaction:
- Party Identification. It’s important to know the identity of all parties to the escrow agreement – the benefited party, the burdened party, and the party that is responsible for resolving matters related to the escrow agreement.
- Resolution Definition. It’s important to clearly define what constitutes a resolution to the escrow agreement so that there is no confusion between parties.
- Alternate Resolution Definition. It’s important to define alternate resolution as well in the event that the party whose funds are being escrowed and that party who is responsible for cleaning up title or resolving the matter that’s the subject of the escrow fails to do so.
- Disbursement Provisions. It’s important to include instructions for how the remaining escrow funds will be disbursed.
- Termination Date. It’s important to set a termination date as well, at which point the escrow agreement will be considered terminated and all obligations met.
These details need to be hammered out by all parties involved in the escrow agreement to ensure everyone has a clear understanding of their obligations.
Commercial Partners Title Company
At Commercial Partners Title Company, we are known as the experts in commercial transactions in Minnesota and across the country. If you are looking for assistance with your next commercial title transaction, you’ve come to the right place. Our team of underwriters, escrow agents, title closers, and more can help guide you through the details of your transaction. Contact us today at our downtown Minneapolis office to learn more about our services and see how we can help with your next commercial transaction.