Common Contracts
1 similar Escrow Agreement contracts
Escrow AgreementEscrow Agreement • February 14th, 2022
Under an Escrow Agreement, money, securities or movable property is given by one party to a third party to hold in escrow until the occurrence of a certain event. An example would be the placement in escrow of the purchase price for real estate property, which amount is delivered to the vendor once the deal is closed with a notarial deed. Another example is an amount deposited by a vendor of shares in order to guarantee its indemnification obligations as contained in a Share Purchase Agreement. An Escrow Agreement is not regulated by statute; however, the rules of articles 1921 to 1948 of the Civil Code on custody and deposit (“bewaargeving/dépôt”) can be applied. In the following model, a bank acts as escrow agent, and the escrow account is in the name of both the depositor and the escrow beneficiary. Alternatively, the parties may appoint a third party as escrow agent and provide for the opening of a bank account in the name of the escrow agent. It is also customary to deposit softwa
