When parties to a contract have have requested that Masters Title & Escrow (the “Company”) holds in escrow a sum (the “Deposit”) which represents the earnest money deposit due from the buyer for the settlement of the property, these terms apply.
The Company will immediately inform both Buyer and Seller in the event the Deposit is returned due to dishonored funds. The Deposit is to be retained without interest by the Company on the following terms and conditions:
- The Deposit shall be disbursed at settlement. In the event the contract shall be terminated or settlement does not occur, Buyer and Seller agree that the Deposit shall be disbursed by the Company only in accordance with a Release of Deposit agreement executed by Buyer and Seller. In the event Buyer and/or Seller fail to complete the real estate transaction in accordance with the terms and conditions of the contract, and either Buyer or Seller shall be unable or unwilling to execute a Release of Deposit agreement, Buyer and Seller hereby agree that the Company may distribute the Deposit in accordance with the following Section 2.
- Prior to distributing the Deposit under this section, the Company shall notify both the Buyer and Seller that the Company intends to distribute the Deposit to the person who, in the good faith opinion of counsel for the Company, is entitled to receive the Deposit in accordance with the terms of the contract. The notice will disclose to the Buyer and Seller that either party may prevent distribution of the Deposit by submitting a written protest within 10 days from the date the notice was delivered or mailed by the Company; and if neither party submits a protest within 10 days from the date the notice was delivered or mailed by the Company, the Deposit will be distributed in accordance with the Company’s notice.
- In the event costs or expenses, including attorneys fees, are incurred by Company because of litigation or otherwise, arising out of the holding of the Deposit, the Company shall be entitled to reimburse itself out of the Deposit for any such costs and expenses, inclusive of attorneys fees. If the Company is unable for any reason to reimburse itself out of the funds, the undersigned parties do hereby jointly and severally agree to indemnify the Company for any and all costs and expenses, including attorneys fees, that the Company may sustain arising out of any acts taken by the Company in good faith pursuant to this Agreement.
- It is understood and agreed that the event of a dispute, the Company, may in its absolute discretion pay the funds into Court and allow the Court to determine the proper disposition of the Deposit or continue to hold the funds pending receipt by Company of uniform written direction from all parties hereto.
- The Company, acting as escrow agent, shall not be liable for any error of judgment or for any act taken or omitted to be taken in good faith or in reliance on any written notice, certificate or other documents believed by it in good faith to be genuine and to be signed or submitted by an authorized signatory.
Last updated: 10/1/19