Posted by Adam on November 22, 1998 at 20:07:52:
EARNEST MONEY ESCROW AGREEMENT (NO INTEREST)
(1) THIS AGREEMENT is made and entered into the date set forth below, between
__________________________ __________________________________________, the Escrow Agent,
herein called the “Company”, and
Purchaser, the undersigned depositors.
(2) WHEREAS Purchaser and Seller wish to place this earnest money deposit in the amount of
$_______________ in the form of _____________________, in the posession of a third party, Escrow
(3) WHEREAS the Company is willing to hold said funds or promissory note, as Escrow Agent, for the benefit
of Purchaser and Seller,
(4) NOW THEREFORE, in consideration of the fee paid to the Company, subject to Exhibit I GENERAL
PROVISIONS SPECIFICALLY INCORPORATED HEREIN BY REFERENCE, the Company agrees to hold such
earnest money deposit until ___________, 19 or apply said deposit, as instructed in writing, at
the contract closing. During the period the Company is in possession of the earnest money deposit, any funds
in the form of cash or check will be deposited in a federally insured financial institution.
(5) In the event the Seller allegedly violates or defaults under the terms of the contract, Purchaser shall notify
the Company and Seller of such default in writing. If after 15 days from the date notice of default was given to
Seller, as certified to the Company by Purchaser in its Affidavit, the Company has been informed by Purchaser
that Seller has not cured such default satisfactorily to Purchaser, the Company shall refund the earnest money
deposit, less escrow fee, plus any earnings theron, if applicable, to Purchaser subject to Paragraph 10 of
(6) In the event the Purchaser allegedly violates or defaults under the terms of the contract, Seller shall notify
the Company and Purchaser of such default in writing. If after 15 days from the date notice of default was
given to Purchaser, as certified to the Company by Seller in its Affidavit, the Company has been informed by
Seller that Purchaser has not cured such default satisfactorily to Seller, the Company shall refund the earnest
money deposit, less escrow fee, plus any earnings theron, if applicable, to Seller subject to Paragraph 10 of
(7) In the event of default by either Seller or Purchaser pursuant to paragraphs (5) or (6), above, any deposit in
the form of a promissory note shall not be delivered to the designated party until the escrow fee has been paid
to the Company.
(8) A fully executed copy of the purchase contract to which the earnest money deposit applies must be
attached herto for reference. The Company shall not undertake to construe the contract or determine
compliance therewith. Written notice of an election to invoke any specific contract provision shall be given to
the Company by the party invoking such specific contract provision.
(9) NOTE: If Purchaser and Seller are in disagreement as to the disposition of the earnest money deposit,
Paragraph 10 of Exhibit I shall apply.
(10) IN WITNESS WHEREOF, the undersigned have READ and executed this Agreement
this_______________ day of ___________________, 19 ____.
Tax I.D.# (if applicable)
Tax I.D.# (if applicable)
First American Heritage Title Company
(1) The instructions may be supplemented, altered, amended, modified or revoked by writing only signed by all
of the parties hereto, and approved by the Escrow Agent, upon payment of all fees, costs and expenses
(2) No assignment, transfer, conveyance or hypothecation of any right, title or interest in and to the subject
matter of this Escrow shall be binding upon the Escrow Agnet unless written notice thereof shall be served
upon the Escrow Agent and all fees, costs and expenses incident thereto shall have been paid and then only
upon the Escrow Agent’s assent thereto in writing.
(3) Any notice required or desired to be given by the Escrow Agent to any party to this Escrow may be given
by mailing the same addressed to such party at the address given below the signature of such party or the
most recent address of such party shown on the records of the Escrow Agent, and notice so mailed shall for
all purposes hereof be as effectual as though served upon such party in person at the time of depositing such
notice in the mail.
(4) The Escrow Agent may receive any payment called for hereunder after the due date thereof unless
subsequent to the due date of such payment and prior to the receipt thereof the Escrow Agent shall have been
instructed in writing to refuse any such payment.
(5) The Escrow Agent shall not be personally liable for any act it may do or omit to do hereunder as such
agent, while acting in good faith and in the exercise of its own best judgement, and any act done or omitted by
it pursuant to the advice of its own attorneys shall be conclusive evidence of such good faith.
(6) The Escrow Agent is hereby expressly authorized to disregard any and all notices or warnings given by
any of the parties hereto, or by another person, firm or corporation, excepting only orders or process of court,
and is hereby expressly authorized to comply with and obey any and all process, orders, judgments or decrees
of any court, and in case the Escrow Agent obeys or complies with any such process, order, judgment or
decree of any court it shall not be liable to any of the parties hereto or to any other person, firm or corporation
by reason of such compliance, notwithstanding any such process, order, judgment or decree be subsequently
reversed, modified, annulled, set aside or vacated, or found to have been issued or entered without
(7) In consideration of the acceptance of this escrow by the Escrow Agent, the undersigned agree, jointly and
severally, for themselves, their heirs, legal representatives, successors and assigns, to pay the Escrow Agent
its charge hereunder and to indemnify and hold it harmless as to any liability by in incurred to any other
person, firm or corporation by reason of its having accepted the same, or its carrying out any of the terms
thereof, and to reimburse it for all its expenses, including, among other things, counsel fees and court costs
incurred in connection herewith; and that the Escrow Agent shall have a first and prior lien upon all deposits
made hereunder to secure the performance af said agreement of indemnity and payment of its charges and
expenses, hereby expressly authorizing the Escrow Agent, in the event payment is not received promptly from
the undersigned, to deduct such charges and expenses, without previous notice, from any funds deposited
hereunder. Escrow fees or charges, as distinguished from other expenses hereunder, shall be as written above
the Escrow Agent’s signature at the time of the acceptance hereof.
(8) The Escrow Agent shall be under no duty or obligation to ascertain the identity, authority or rights of the
parties executing or delivering or purporting to execute or deliver these instructions or any documents or
papers or payments deposited or called for hereunder, and assumes no responsibility or liablility for the
validity or sufficiency of these instructions or any documents or papers or payments deposited or called for
(9) The Escrow Agent shall not be liable for the outlawing of any rights under any Statute of Limitations or by
reason of laches in respect to the Instructions or any documents or papers deposited.
(10) In the event of any dispute between the parties hereto as to the facts of default, the validity or meaning of
these instructions or any other fact or matter relating to the transaction between the parties, the Escrow Agent
is instructed as follows:
a. That it shall be under no obligation to act, except under process or order of court, or until it
has been adequately indemnified to its full satisfaction, and shall sustain no liability for its
failure to act pending such process or court order or indemnification;
b. That it may in its sole and absolute discretion, deposit the property described herin or so
much thereof as remains in its hands with the then Clerk, or acting Clerk, of the District Court,
State of Colorado in whose jurisdiction the subject property lies, and interplead the parties
hereto, and upon so depositing such property and filing its complaint in interpleader it shall be
relieved of all liability under the terms hereof as to the property so deposited, and furthermore,
the parties hereto for themselves, their heirs, legal representatives, successors and assigns do
hereby submit themselves to the jurisdiction of said court and do hereby appoint the then clerk,
or acting Clerk, of said court as their Agent for the service of all process in connection with
such proceedings. The institution of any such interpleader action shall not impair the rights of
the Escrow Agent under paragraph number 7 above.
(11) If the subject matter of this escrow consists in whole or in part of funds, the same shall not be commingled
by the Escrow Agent with its own funds; provided, however, that anything contained in the Escrow
Agreement of which these General Provisions are made a part, to the contrary notwithstanding, the Escrow
Agent shall NOT BE REQUIRED TO DEPOSIT THE SMAE IN ANY INTEREST BEARING OR INCOME
PRODUCING ACCOUNT, AND SHALL NOT IN ANYWAY BE LIABLE TO ANY OF THEOTHER PARTIES
TO THE ESCROW AGREEMENT FOR THE PAYMENT OF INTEREST UPON SAID FUNDS FOR THE
PERIOD DURING WHICH THER ARE HELD BY THE ESCROW AGENT. It is intended that the provisions
hereof shall supersede any other terms, conditions, covenants or provisions contained the Escrow Agent in
writing. It is intended that the provisions hereof shall supersede any other in the Escrow Agreement which
expressly or by implication are in conflict herewith.