escrow

**BonBun** · 07-27-2009, 07:08 PM

Hi,

Do all escrow companies include a general instructions statement that Seller and Buyer need to sign? The general instructions include a paragraph that says:

"We [Buyer and Seller] agree to hold you [the Escrow Company] harmless as escrow holder hereunder from all losses and expenses, including reasonable attorney's fees and court costs sustained by reason of any claim, demand or action filed, legal or otherwise, which may in any manner arise out of, or from the property which is the subject of this escrow, or out of or from this escrow before or after closing, notwithstanding anything in these instructions to the contrary, and in addition thereto, we jointly and severally agree to pay reasonable escrow fees therefor."

Does the above paragraph waive the Buyer and Seller's rights to any type of claim against the escrow company in the event that the escrow company commits negligence or misconduct?

If so, is it still necessary for the Buyer and Seller to sign all the general instructions that the Escrow company wants to be signed?

Thanks in advance.

**tucsonhomes** · 07-28-2009, 11:59 AM

Originally Posted by BonBun

Hi,

Do all escrow companies include a general instructions statement that Seller and Buyer need to sign? The general instructions include a paragraph that says:

"We [Buyer and Seller] agree to hold you [the Escrow Company] harmless as escrow holder hereunder from all losses and expenses, including reasonable attorney's fees and court costs sustained by reason of any claim, demand or action filed, legal or otherwise, which may in any manner arise out of, or from the property which is the subject of this escrow, or out of or from this escrow before or after closing, notwithstanding anything in these instructions to the contrary, and in addition thereto, we jointly and severally agree to pay reasonable escrow fees therefor."

Does the above paragraph waive the Buyer and Seller's rights to any type of claim against the escrow company in the event that the escrow company commits negligence or misconduct?

If so, is it still necessary for the Buyer and Seller to sign all the general instructions that the Escrow company wants to be signed?

Thanks in advance.

In general, yes escrow companies require legal releases. Also in general, it is questionable how enforceable these documents are and if there is negligence on the part of the escrow, these documents will not protect them.

Assuming you are working with a competent real estate professional, they will put you in touch with competent related services so that these issues will be of less concern.