EARNEST MONEY / ESCROW AGENT POLICY
NOW THEREFORE, in consideration of the premises, it is agreed between the parties hereto that the Funds be deposited in Escrow with the Escrow Agent until such time as it is notified in writing by the Parties to terminate the Escrow and disburse the Funds as jointly directed by the parties.
In the event that the Contract identifies a separate party (not Mid South Title) as the Earnest Money Holder or Escrow Agent, both the SELLER and BUYER agree that this Agreement shall control.
That the SELLER and BUYER immediately provide for a complete copy of the final and binding Contract, along with any and all Counter-Offers or Addendums, to be sent to MID SOUTH TITLE.
In the event that the Funds are presented to MID SOUTH TITLE in any form, including, but not limited to a physical check, a bank issued digital check, cash, money order, or federal wire, the SELLER and BUYER agree that the act of presentation will constitute the election of MID SOUTH TITLE as the Escrow Agent, and do hereby agree to terms of this Agreement and MID SOUTH TITLE’s Earnest Money / Escrow Agent Policy, which maybe found online at https://www.gomst.com/, or by request. In the event of any delay by either the SELLER or the BUYER to officially sign this Agreement, MID SOUTH TITLE shall reserve the right to refuse any other official direction from either the SELLER or the BUYER, and enter the FUNDS into court.
That the Escrow Agent is hereby relieved of all liability under this agreement except for fraud and holds the Funds without the payment of interest thereon, except as may be hereinafter provided.
That the SELLER and the BUYER will indemnify and will save and hold harmless the Escrow Agent from all loss, costs, damages, judgments, or expense, including but not limited to, court costs and attorney’s fees, the Escrow Agent may incur or sustain arising by reason of the execution of this Escrow Agreement and the undertaking of the Escrow, including, but not limited to, a delay in the electronic wire transfer of funds.
That the Escrow Agent shall disburse the Funds in the manner provided for in the Contract or any manner as jointly directed in writing by the SELLER and the BUYER. The Escrow Agent may rely on the instructions directing disbursement of the Funds in the following ways:
- As agreed to in the Contract
- By a signed Termination Form or Contract Addendum, signed by all signers of the Contract, and tendered to MID SOUTH TITLE by a Party, Listing or Selling Real Estate Agent, or Counsel as identified in the Contract
- By a signed Escrow Release and Disbursement Form created and disseminated by MID SOUTH TITLE
In the event of any disagreement between the Parties hereto resulting in conflicting instructions to, or adverse claims or demands upon the Escrow Agent with respect to the release of the Funds, the Escrow Agent shall have the right to refuse to comply with any such instruction, claim or demand so long as such disagreement shall continue for 30 days. In so refusing, the Escrow Agent shall not be liable for any loss or damage for its failure to release the Funds. The Escrow Agent shall not be or become liable in any way for its failure or refusal to comply with any such conflicting instructions or adverse claims or demands; and it shall be entitle to continue to refrain from acting until such conflicting instructions or adverse claims or demands:
- shall have been adjusted be agreement and it shall have been notified in writing thereof by the parties hereto or
- shall have finally been determined in a court of competent jurisdiction.
That, in the event of any such disagreement, the Escrow Agent shall further have the right, in its sole discretion, to:
- Resign by giving thirty (30) days written notice, either by mail or electronically, thereof to the Parties hereto. Upon the resignation of the Escrow Agent, the Parties shall furnish to the Escrow Agent written instructions for the release of the Escrow Funds; or
- Institute an appropriate proceeding in a court of competent jurisdiction and pay into the court the Funds held in Escrow. In such event, the fees and expenses of such proceeding, including, with limitation, reasonable Attorneys’ fees incurred in connection with such action, will be part of the expense of administrating the Escrow; and the fees and expenses will be a charge against the Funds paid into the court. The Parties shall reimburse the Escrow Agent for any and all outstanding costs and expenses in the event the Funds are not adequate to satisfy the expenses incurred by the Escrow Agent as described hereinabove. Upon the institution of the proceeding, the Escrow Agent shall take whatever action it deems necessary and property to transfer the control of Funds to the court. In doing so, the Escrow Agent shall not be responsible for any loss of interest.
The Parties covenant and agree that in performing any of its duties under this Agreement, Escrow Agent will not be liable for any loss, costs or damage which it may incur in the capacity of the Escrow Agent, except for any loss, costs or damage arising of its own extreme gross negligence or blatant willful misconduct. The Parties also covenant and agree that the Escrow Agent will not be liable for any loss, costs or damage which it may incur in the capacity of the Escrow Agent as long as the Escrow Agent meets or exceeds the generally accepted local standard of care in performing such duties. Accordingly, Escrow Agent will not incur any liability with respect to (i) any action taken or omitted to be taken in good faith upon advise of counsel for the Parties given with respect to any questions relating to duties and responsibilities, or (ii) any action taken or omitted to be taken in reliance upon any documents, including but not limited to, any written notice of instruction provided for in the Agreement or in the Contract, not only as to its execution and the validity and effectiveness of its provisions but also the truth and accuracy of any information contained in the same, with Escrow Agent in good faith believes to be genuine, to be signed or presented by a proper person or persons and to conform with the provisions of this Agreement and the Contract.
This Agreement will not be effective until it has been executed by all Parties of the Contract, and that the Escrow Agent has received Funds that have become Good Funds by law and are available for immediate use. Conversely, this Agreement maybe effective if the Parties have caused the Escrow Agent to receive the funds prior to the execution of the Parties of this Agreement, and the Agreement’s Effective Date will be the earlier of the execution of this Agreement or the Escrow Agent’s receipt of Funds.
The Escrow Agent reserves the right to withhold from the Funds money to pay any specific and identifiable charges incurred as a result of the establishment and maintenance of any investment account, including any safekeeping fees or service charges levied by the Institution with which the Funds are deposited, as well as its escrow fee.
That the undersigned Parties of this Agreement do hereby certify that they are aware that Federal Deposit Insurance Corporation (FDIC) coverage applies only to a maximum amount of $250,000.00 for each individual depositor; and, further, that said Parties understand and hereby acknowledge that MID SOUTH TITLE assumes no responsibility for, nor will they hold same liable for, any loss occurring which arises from the fact that the amount of the above account may cause the aggregate amount of any individual depositor’s accounts to exceed $250,000.00 and that the excess amount is not insured by the Federal Deposit Insurance Corporation.