Escrow Agreement Example

Posted by on September 19, 2021

Most trust agreements are entered into when one party wishes to ensure that the other party meets certain conditions or obligations before it can proceed with a transaction. For example, a seller may set up a trust agreement to ensure that a potential buyer can provide financing before the sale passes. If the buyer cannot provide financing, the agreement may be cancelled and the trust agreement terminated. This agreement benefits the fiduciary agent, the seller and the buyer. The trust agent is not permitted to combine personal accounts with trust funds at any time during the period of this trust agreement. For certain transactions such as real estate, the Escrow agent can open a fiduciary account in which funds are deposited. Cash was traditionally the capital that people entrust to a trust agent. .

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