In the event that the parties have requested that Masters Title & Escrow ("MTE") hold in escrow the earnest money deposit due from the buyer for the settlement of the subject property (the "Deposit”), then these terms shall apply. MTE 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 MTE on the following terms and conditions:
1. 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 MTE 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, or if the contract contains a different standard for release, Buyer and Seller hereby agree that MTE may distribute the Deposit in accordance with Section 2, below.
2. Prior to distributing the Deposit under this section, MTE will make best efforts to notify both the Buyer and Seller that MTE intends to distribute the Deposit to the person who, in the good faith opinion of counsel for MTE, 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 sent by MTE; and if neither party submits a protest within 10 days from the date the notice was sent by MTE, the Deposit will be distributed in accordance with the notice. The parties understand and agree that if the notice indicates that MTE intends to release the Deposit and a party does not respond or take any action, the Deposit will be disbursed without court intervention.
3. In the event costs or expenses, including attorneys fees, are incurred by MTE because of litigation or otherwise, arising out of the holding of the Deposit, MTE shall be entitled to reimburse itself out of the Deposit for any such costs and expenses, inclusive of attorneys fees. If MTE is unable for any reason to reimburse itself out of the funds, the undersigned parties do hereby jointly and severally agree to indemnify MTE for any and all costs and expenses, including attorneys fees, that MTE may incur in good faith pursuant to this Agreement.
4. It is understood and agreed that the event of a dispute, MTE, 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 MTE of uniform written direction from all parties hereto.
5. MTE, 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.
6. This agreement may be executed electronically and in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
