Oct 11,2021 | 2 min read

Escrow Agreement | Download Free Templates

1. What is an Escrow Agreement? 

An escrow agreement is a legal agreement, which describes the terms and conditions applicable to the participants involved. An escrow agreement contains a detailed responsibility of the parties involved. An escrow agreement typically includes a nonpartisan party who is referred to as the escrow agent. This party will hold the security or asset of certain worth until the conditions mentioned in the agreement are fulfilled. Escrow agents will have to completely outline the terms and conditions for all the parties participating in the agreement. 

2. Why is it important? 

a. It is to ensure that the other parties in the agreement are going to stand by whatever they claim to do so. 

b. involve some parties to perform something or meet certain obligations before the deal could go through. 

c. It helps to facilitate strategic investments.

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Lawyered Team

Lawyered Team