escrow-agreement

name	escrow-agreement
title	Escrow Agreement
description	Drafts tripartite U.S. escrow agreements for M&A and commercial closings, covering escrow property, deposit mechanics, release conditions, dispute handling, agent duties/limits, indemnity, fees, and termination. Use when asked to draft an escrow agreement, escrow instructions, holdback/indemnity escrow, closing escrow, or escrow agent agreement.
author	CaseMark
author_url	https://github.com/CaseMark/skills/tree/main/skills/legal/escrow-agreement
license	Apache-2.0
version	0.1.0
execution_mode	open
jurisdiction	us
practice	corporate
language	en
tags	["agreement","drafting","transactional"]

Escrow Agreement

Draft an enforceable tripartite escrow agreement aligned with the underlying transaction.

Prerequisites

1. Deal documents and escrow economics (SPA/merger/LOI, amount, holdback purpose, term).
2. Party names, entity types, jurisdictions, notice addresses.
3. Escrow property details (funds/stock/IP, wire instructions or delivery mechanics).
4. Objective release conditions with evidence requirements and deadlines.
5. Fee schedule and expense allocation.
6. Governing law, forum/ADR, and execution requirements.
7. Compliance constraints (AML/KYC, securities, real estate, export controls, tax).

Quick Start

Structure the agreement in this order:

1. Preamble & Recitals — parties, roles (Purchaser, Seller, Escrow Agent), transaction reference. Tie recitals to primary agreement; do not introduce new obligations.
2. Definitions — Escrow Property, Release Conditions, Business Day, Written Notice. Make all triggers objective and measurable.
3. Appointment & Scope — ministerial role, reliance on written instructions, resignation/successor process.
4. Deposit & Custody — amounts, timing, payment method, asset descriptions. Include time is of the essence if required.
5. Release Mechanics — trigger events, documentary evidence, distribution instructions, timing.
6. Disputes & Interpleader — require joint instructions or final court order/arbitral award for conflicting claims.
7. Agent Protections — exculpation, reliance, indemnity (carve out gross negligence/willful misconduct/bad faith).
8. Fees & Expenses — schedule, payer, reimbursement, fee offset from escrow if unpaid.
9. Term & Termination — duration, automatic end, final accounting, retained reserve.
10. Governing Law & Forum — choice of law, venue/arbitration, jury waiver if desired.
11. Boilerplate — notices, assignment, counterparts, ESIGN/UETA if e-signing.
12. Signature Blocks — match entity authority requirements.

Release Conditions Table

Complete and embed in agreement or attach as exhibit. Define each partial-release tranche as its own row.

Condition	Evidence Required	Deadline