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The Snake Keeper Blog

October 10, 2021

Termination Of Escrow Agreement

Filed under: Uncategorized — admin @ 9:32 pm

In the course of a commercial transaction, it may happen at a time when it is in the best interest of one party to progress only if it knows with certainty that the other party can fulfill its obligations. This is where the use of a trust agreement comes in. Payment is usually made to the trust agent. The buyer can perform due diligence for their potential acquisition – such as a home inspection or securing financing – while assuring the seller that they are able to complete the purchase. If the purchase passes, the fiduciary agent will apply the money to the purchase price. If the conditions set out in the agreement are not met or if the agreement is concluded, the fiduciary agent may refund the money to the buyer. Most trust agreements are entered into when one party wishes to ensure that the other party meets certain conditions or obligations before it can proceed with a transaction. Conversely, the seller wants to make sure he gets paid when he sends the goods to the buyer. Both parties may enter into a trust agreement to ensure delivery and payment. You can agree that the buyer deposits the money with an agent and gives irrevocable instructions to pay the money to the seller as soon as the goods arrive.

The trust agent – probably a lawyer – is bound by the terms of the agreement….

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