05 04 ESCROW AGREEMENT

• Jurisdiction: Arkansas
• Library: Arkansas Form Book - Complete (2023 Ed.)

05-04 ESCROW AGREEMENT

ESCROW AGREEMENT

This Escrow Agreement (the "Agreement"), dated as of [date], between and among [buyer name], an Arkansas [entity type] ("Buyer"); and [seller name], an Arkansas [entity type] ("Seller"), and [escrow agent name], an Arkansas [entity type] as escrow agent ("Escrow Agent").

This is the Escrow Agreement referred to in the Real Property Purchase Agreement dated as of [purchase contract date] for [property description] (the "Purchase Agreement") between Buyer and Seller. Capitalized terms used in this agreement without definition shall have the respective meanings given to them in the Purchase Agreement.

The parties, intending to be legally bound, hereby agree as follows:

1. Establishment of Escrow.

(a) Buyer is depositing with Escrow Agent an amount equal to [escrow amount] in immediately available funds (as increased by any earnings thereon and as reduced by any disbursements therefrom or losses on investments, the "Escrow Fund"). Escrow Agent acknowledges receipt thereof.

(b) Escrow Agent hereby agrees to act as escrow agent and to hold, safeguard and disburse the Escrow Fund pursuant to the terms and conditions hereof as set forth in the Purchase Agreement.

2. Investment of Funds. Unless Buyer and Seller jointly instruct Escrow Agent in writing, the Escrow Fund shall be invested, to the extent possible, in United States Treasury Bills having a remaining maturity of 90 days or less and repurchase obligations secured by such United States Treasury Bills, with any remainder being deposited and maintained in a money market deposit account with Escrow Agent, until disbursement of the entire Escrow Fund. Escrow Agent is authorized to liquidate in accordance with its customary procedures any portion of the Escrow Fund consisting of investments to provide for payments required to be made under this Agreement.

3. Disbursement of Funds.

Escrow Agent shall hold and disburse the Escrow Funds in accordance with the terms of the Purchase Agreement.

4. Claims/Disputes.

(a) If either Buyer or Seller gives notice (a "Notice") to Escrow Agent and the other party, specifying in reasonable detail the nature of its right to receive the Escrow Funds as set forth herein, Escrow Agent shall, unless notified by the non-notifying party that there is a dispute as to the notifying party's right to receive the Escrow Funds within seven days of the receipt of the Notice and except as provided in subsection (b) below, pay to the notifying party the amount held in the Escrow Fund.

(b) In the event Buyer or Seller gives notice of a dispute (a "Dispute") with any claim submitted by the notifying party within seven days of receipt of Notice of such claim, and the parties are unable to resolve such Dispute, either Buyer or Seller may submit...