3.15 Requirements for Escrow Agreements

• Library: Real Estate Practice Deskbook (2019 Ed.)

B. (§3.15) Requirements for Escrow Agreements

To bind both the seller and the purchaser, an escrow agreement must contain all the necessary contractual elements. In the absence of a binding contract between the parties, a deposit made by one party is merely a revocable agency even if it is called an escrow. Mudd v. Dillon, 65 S.W. 973 (Mo. 1901).

After execution of a proper escrow agreement and delivery to the escrowee, neither party can revoke without the other's consent. Peterman v. Peterman, 228 S.W. 1062 (Mo. 1921). If the escrow agreement is complete, an escrowee who has accepted...