Model Escrow Agreement - Escrow Trust Fund

Sep 15, 2026

Uploaded by Anda

Model form escrow agreement issued by the New York State Department of Law, establishing an escrow account to hold deposits made by a purchaser under an offering plan. The agreement sets required bank account details, designated attorney signatories, and jurisdictional submission to New York courts. It governs how and when deposits must be placed into escrow, notice and cancellation timing, and how funds are released only after plan consummation or other permitted conditions. It restricts sponsor or agent access before closing and addresses cancellation disputes and rescission limits.

LanguageEnglish

CategoryLetters

FormatPDF

Pages6

Reading Time2 min

AccessFree to download

Establishment of the Escrow Account

Deposits into the Escrow Account

Release of Funds

NEW YORK STATE DEPARTMENT OF LAW MODEL FORM OF ESCROW AGREEMENT AGREEMENT made this day of , 20 , by and among ("PURCHASER"), (“SPONSOR”), as sponsor of the offering plan (“Plan”) and (“ESCROW AGENT”) . WHEREAS, SPONSOR has filed the Offering Plan with the Attorney General to offer for sale [cooperative/condominium/homeowners association/time shares] [ownership/membership/fractional] interests at the premises located at , subject to the terms and conditions set forth in the Plan; and WHEREAS, ESCROW AGENT is authorized to act as an escrow agent hereunder in accordance with New York General Business Law (“GBL”) Sections 352-e(2-b), 352-h and the New York Department of Law’s regulations promulgated thereunder; and WHEREAS, SPONSOR and PURCHASER desire that ESCROW AGENT act as escrow agent for deposits, down payments, and advances (referred to herein as “Deposit”) pursuant to the terms of this Agreement. NOW, THEREFORE, in consideration of the covenants and conditions contained herein and other good and valuable consideration, the parties hereby agree as follows: 1. ESTABLISHMENT OF THE ESCROW ACCOUNT. 1.1. ESCROW AGENT [shall/has] establish[ed] an escrow account for the purpose of holding the Deposit made by PURCHASER pursuant to that certain purchase agreement for the purchase and sale of [shares/unit/membership interest/fractional interest] [__ ](the “Purchase Agreement”) at [NAME OF BANK] located at , in the State of New York ("Bank"), a bank authorized to do business in the State of New York. The escrow account is entitled ("Escrow Account") . [The account number is .] 1.2 ESCROW AGENT has designated the following attorneys to serve as signatories: . All designated signatories are admitted to practice law in the State of New York. All of the signatories on the Escrow Account have an address of , and a telephone number of . 1.3 ESCROW AGENT and all authorized signatories hereby submit to the jurisdiction of the State of New York and its Courts for any cause of action arising out of this Agreement or otherwise concerning the maintenance of or release of the Deposit from escrow. Model Escrow Agreement 1.4 Neither ESCROW AGENT nor any authorized signatories on the Escrow Account are the Sponsor, Selling Agent, Managing Agent (as those terms are defined in the Plan), or any principal thereof, or have any beneficial interest in any of the foregoing . 1.5 The Escrow Account is not an IOLA account established pursuant to Judiciary Law Section 497. 2. DEPOSITS INTO THE ESCROW ACCOUNT. 2.1 All Deposits received from PURCHASER prior to closing, whether in the form of checks, drafts, money orders, wire transfers, or other instruments which identify the payor, shall be placed into the Escrow Account. All instruments to be placed into the Escrow Account shall be made payable directly to the order of , as ESCROW AGENT, pursuant to the terms set forth in the Plan. Any instrument payable to, or endorsed other than as required hereby, and which cannot be deposited into such Escrow Account, shall be returned to PURCHASER promptly, but in no event more than five (5) business days following receipt of such instrument by ESCROW AGENT. In the event of such return of the Deposit, the instrument shall be deemed not to have been delivered to ESCROW AGENT pursuant to the terms of this Agreement. 2.2 Within five (5) business days after the Purchase Agreement has been tendered to ESCROW AGENT along with the DEPOSIT, ESCROW AGENT shall place the DEPOSIT into the Escrow Account. Within ten (10) business days of placing the DEPOSIT in the Escrow Account, ESCROW AGENT shall provide written notice to Purchaser and Sponsor, confirming the Deposit. Such notice shall set forth the Bank, the account number, and the initial interest rate earned thereon. If the PURCHASER does not receive notice within fifteen (15) business days after tender of the Deposit, the PURCHASER may cancel the Purchase Agree

FAQs

What is the purpose of the escrow account in this agreement?

The escrow account is established to hold the purchaser’s deposit under the purchase agreement for the relevant ownership interests, pending conditions required by the offering plan.

How are deposits placed into the escrow account and what notice is required?

All deposits received before closing are placed into the escrow account. Within ten business days after placing the deposit, the escrow agent provides written notice confirming the deposit, including the bank, account number, and initial interest rate, with timing linked to purchaser cancellation rights.

When can the escrow agent release the deposit?

Release is prohibited until after plan consummation as evidenced by a post-closing amendment, and is permitted only as directed under the purchase agreement and this agreement, by subsequent signed writing, or by a final non-appealable court order or judgment.

Sep 15, 2026

Uploaded by Anda