An escrow holdback agreement addendum is used to “hold back” part of the sale price at closing until certain conditions are met by the seller. The document details the release conditions, the amount of money in escrow, and the third party who will be entrusted with the escrowed funds. Escrow holdback agreements make sure that the seller fulfills their post-closing duties, such as completing any repairs or settling outstanding property taxes.
ESCROW HOLDBACK ADDENDUM
1. THE PARTIES. This Escrow Holdback Purchase Agreement Addendum (“Addendum”) made this [MM/DD/YYYY] is by and between:
Seller: [SELLER’S NAME] (“Seller”) and
Buyer: [BUYER’S NAME] (“Buyer”).
The Seller and Buyer are each referred to herein as a “Party” and, collectively, as the “Parties.”
2. ORIGINAL AGREEMENT. This Addendum is being added to the purchase agreement between the Parties, dated [MM/DD/YYYY], for the property located at [PROPERTY ADDRESS] (“Original Agreement”).
3. TERMS. Under the terms of this Addendum, [AGENT’S NAME] (“Escrow Agent”) shall act as the Escrow Agent for the purpose of consenting to the terms of this Addendum. The Parties have agreed and are desirous and willing that the closing of the transaction, in accordance with the Original Agreement, shall be amended to reflect the terms of this Addendum.
Except as specifically mentioned in this Addendum, all other terms and conditions of the Original Agreement shall remain in full force and effect.
4. SELLER’S OBLIGATIONS. Seller acknowledges that prior to or at the closing, $[AMOUNT] (“Escrow Funds”) shall be held by the Escrow Agent until the following obligations are satisfied by the Seller and approved by the Buyer or any third (3rd) party: [OBLIGATIONS]
4. EXECUTION. This Addendum may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
Seller’s Signature: ___________________ Date: [MM/DD/YYYY]
Print Name: [SELLER’S NAME]
Buyer’s Signature: ___________________ Date: [MM/DD/YYYY]
Print Name: [BUYER’S NAME]
Agent’s Signature: ___________________ Date: [MM/DD/YYYY]
Print Name: [AGENT’S NAME]