Fillable Printable Sample Form for ESCROW AGREEMENT

Sample Form for ESCROW AGREEMENT

ESCROW AGREEMENT

This Escrow Agreement ("Agreement") is entered into by and among Montserrat Homeowners

Association, Inc. ("Montserrat"), Law Office of Baker Firm, PLLC Fee Attorney for Fidelity

National Title Company, ("Escrow Agent") and _______________________________

("Builder"), who agree as follows:

1. Builder Escrow Deposit Pursuant to Section 6.01 (xx) Builder Approval/Escrow Deposits

of the Montserrat Deed Restrictions, Builder is required to deposit $5,000 in escrow (the

"Escrow Amount") with Escrow Agent pending completion of the residence to be built by

Builder in the Montserrat development and the occurrence of certain other conditions.

This Agreement shall govern the relationship between Montserrat, Escrow Agent, and

Builder with respect to the Escrow Amount.

2. Delivery of Escrow Amount Simultaneously with the execution of this Agreement,

Builder has delivered the Escrow Amount to Escrow Agent (which funds shall be held by

Escrow Agent as provided in this Agreement).

3. Conditions of Escrow The Escrow Agent shall hold the Escrow Amount on the following

conditions:

a. Investment of Escrow Amount The Escrow Agent shall deposit the Escrow Amount

in an account at any state or nationally chartered bank insured by the FDIC. Escrow

Agent shall not be liable, and all other parties hereto release Escrow Agent from all

liability, for any loss or delay in payment of any of the Escrow Amount caused by the

failure of any financial institution in which the Escrow Amount has been deposited.

b. Distribution of Escrow Amount The Escrow Agent shall release all or a portion of the

Escrow Amount on the following conditions: (i) to Montserrat upon written

authorization from a representative of the Architectural Control Committee of

Montserrat certifying that written notice of Builder's failure to (a) comply with the

Design Guidelines, (b) cure any deficiency in Builder's construction of the residence,

or (c) pay any costs incurred or fines assessed against Builder in connection with the

construction of such residence, has been provided to Builder and Builder has not

paid or corrected such failure as of the date of such certification and such

certification is at least ten (10) days after written notice of Builder's default was given;

or (ii) to Builder upon written authorization from a representative of the Architectural

Control Committee of Montserrat. The written authorization from Montserrat must

state the amount to be distributed from escrow. Upon the release of all of the funds

held in escrow by the Escrow Agent, this Agreement shall terminate and be of no

further force and effect. Builder shall have no authority to direct Escrow Agent in the

disbursement of the Escrow Amount.

c. Successor Escrow Agents The Escrow Agent, or any successor Escrow Agent, may

at any time resign by giving notice in writing to Montserrat and Builder and shall be

discharged from its duties under this Agreement on the first to occur of the

appointment of a successor Escrow Agent, as provided in this Paragraph 3.c, or the

expiration of thirty (30) calendar days after the written notice is given. In the event of

any resignation, a successor Escrow Agent, which shall be a title company with an

office in Fort Worth, Texas, must be appointed within 30 days by Montserrat. In the

event Montserrat does not appoint a successor Escrow Agent within said thirty (d0)

day period, then Escrow Agent may, at its election, interplead the Escrow Amount

with a court of competent jurisdiction in Tarrant County, Texas, and Escrow Agent

shall be entitled to recover from Builder its attorney's fees and costs in connection

with such interpleader. Any successor Escrow Agent shall deliver to Montserrat,

Builder and the predecessor Escrow Agent a written instrument accepting

appointment under this Agreement, and thereupon it shall succeed to all the rights

and duties of Escrow Agent under this Agreement and shall be entitled to receive the

Escrow Amount then held by the predecessor Escrow Agent under this Agreement.

d. Rights, Privileges, Immunities and Liabilities of Escrow Agent The following shall

govern the rights, privileges, immunities and liabilities of Escrow Agent:

i. Escrow Agent is not a party to, and is not bound by, any agreements between

Montserrat and Builder, nor does it have notice of any instruments out of

which this escrow arises.

ii. In the event the Escrow Agent becomes involved in litigation in connection

with this Agreement or the Escrow Amount, Montserrat and Builder agree to

indemnify and hold Escrow Agent harmless from all losses, costs, damages,

expenses and attorney's fees ("Losses") suffered or incurred by Escrow

Agent as a result thereof; provided that such Losses do not result primarily

from actions taken or omitted to be taken by the Escrow Agent due to its

gross negligence, bad faith or willful misconduct.

iii. Escrow Agent shall be protected in acting on any written notice, request,

waiver consent, certificate, receipt, authorization, power of attorney or other

paper or document which Escrow Agent in good faith believes to be genuine

and what it purports to be.

iv. Escrow Agent shall not be liable for anything which it may do or refrain from

doing in connection herewith provided that it acts in good faith and is not

guilty of willful misconduct or gross negligence.

v. Escrow Agent may, at its own expense, consult with legal counsel in the

event of any dispute or question as to the construction of any provision of this

Agreement or its duties hereunder, and it shall incur no liability and shall be

fully protected in acting in accordance with the opinion and instructions of its

counsel.

vi. In the event of any disagreement resulting in adverse claims or demand

being made in connection with the Escrow Amount, or in the event that

Escrow Agent, in good faith, shall be in doubt as to what action it should take

hereunder, Escrow Agent may, at its option, refuse to comply with any claims

or demands on it, or refuse to take any other action hereunder, so long as

such disagreement continues or such doubt exists, and in such event Escrow

Agent shall not be or become liable in any way or to any person for its failure

or refusal to act, and Escrow Agent shall be entitled to continue to refrain

from acting until (i) the rights of all interested parties shall have been fully and

finally adjudicated by a court of competent jurisdiction or (ii) all differences

shall have been adjusted and all doubt resolved by agreement among all of

the interested parties, and Escrow Agent shall have been so notified in writing

signed by all such parties. In such event, and without limiting the generality of

the foregoing, the Escrow Agent may, at its election, interplead the Escrow

Amount or any portion thereof within a court of competent jurisdiction in

Tarrant County, Texas, or commence judicial proceedings for declaratory

judgment in Tarrant County, Texas, and the Escrow Agent shall be entitled to

recover from Builder its attorneys' fees and costs in connection with any such

interpleader or declaratory judgment action. The rights of Escrow Agent

under this paragraph are cumulative of all other rights which it may have by

law or otherwise.

vii. Escrow Agent, on delivery of the Escrow Amount pursuant to the terms of this

Agreement, shall be discharged from any further obligation hereunder.

viii. This Agreement sets forth the exclusive duties of the Escrow Agent with

respect to any and all matters pertinent hereto and no implied duties or

obligations of the Escrow Agent shall be read into this Agreement. The

Escrow Agent shall not be called upon to advise any party as to its rights and

obligations hereunder.

ix. The Escrow Agent is expressly authorized to comply with and obey order,

judgment, or decrees of any court with respect to any matter relating to this

Agreement. In the event the Escrow Agent obeys or complies with any such

order, judgment or decree of any court, the Escrow Agent shall not be liable

to any of the parties hereto or to any other person by reason of such

compliance, notwithstanding any such order, judgment or decree being

subsequently reversed, modified, annulled, set aside, vacated or found to

have been entered without jurisdiction.

4. Miscellaneous

a. Notices Any notice permitted or required to be given under the terms of this

Agreement shall be in writing and shall be deemed given when received by the

party to whom it is directed or when deposited in the United States mail, certified

or registered, return receipt requested, with postage prepaid, and addressed to

the party to be notified at the appropriate address specified below. The mailing

addresses of the parties are as follows:

Party Address

Montserrat Montserrat Homeowners Association, Inc.

9411 Marbella Drive

Fort Worth, TX 76126

Builder

Escrow Agent

Baker Firm, PLLC

Fee Attorney for Fidelity National Title Company

4541 Bellaire Drive South, Suite 101

Fort Worth, TX 76109

(817) 377-4100

(817) 377-4111 (fax)

The above addresses may be changed by any party by notice given in the manner provided in

this Paragraph 4.a.

b. Effect of Agreement This Agreement shall be binding on, insure to the benefit of

and be enforceable by Montserrat, Builder, and the Escrow Agent and their

respective successors, assigns and legal representatives.

c. Section and Paragraph Headings The section and paragraph headings

contained in this Agreement are for reference purposes only and shall not affect

in any way the meaning or interpretation of this Agreement.

d. Choice of Law This Agreement shall be construed and enforced in accordance

with the laws of the State of Texas and, to the extent applicable, federal law.

e. Counterparts This Agreement may be executed in multiple counterparts each of

which shall be deemed an original but all of which together shall constitute one

and the same instrument.

f. Effective Date The effective date of this Agreement is the date it is executed by

the Escrow Agent, notwithstanding the date of execution by Montserrat or the

Builder.

g. Unenforceability If any portion of this Agreement shall be held invalid or

unenforceable, then so far as is reasonable and possible, the remainder of this

Agreement shall be considered valid and operative and effect shall be given to

the intent manifested by the portion held invalid or unenforceable.

This Agreement is executed by Montserrat on :

MONTSERRAT HOMEOWNERS ASSOCIATION, INC.

By:

Name: Larry H. Hamre

Title: On-Site Property Manager

Montserrat Homeowners Association

This Agreement is executed by BUILDER on :

By:

Name:

Title:

Builder's Tax ID No.:

This Agreement is executed by the Escrow Agent on :

Baker Firm, PLLC. Fee Attorney for Fidelity National Title

Co.

By:

Name: Nikki Jackson

Title: Senior Vice President