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Escrow Purchase Agreement Template for India

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Key Requirements PROMPT example:

Escrow Purchase Agreement

"I need an Escrow Purchase Agreement for a real estate transaction in Mumbai, India, where the purchase price of INR 50 crore will be held in escrow until completion of property due diligence by March 2025, with HDFC Bank as the escrow agent."

Document background
The Escrow Purchase Agreement is a crucial document used in significant financial transactions where parties seek additional security and risk mitigation. This agreement type is commonly employed in India for high-value purchases, mergers and acquisitions, real estate transactions, and other situations where simultaneous exchange of payment and deliverables is critical. The document establishes a three-way relationship between buyer, seller, and an escrow agent (typically a bank or financial institution), governed by Indian law including the Indian Contract Act, 1872, and Banking Regulation Act, 1949. It details the mechanism for holding and releasing funds, conditions precedent, verification procedures, and the roles and responsibilities of all parties. The agreement is particularly important in the Indian context where regulatory compliance and structured transaction processes are essential for legal enforceability.
Suggested Sections

1. Parties: Identification of all parties: Buyer, Seller, and Escrow Agent with their complete details

2. Background: Context of the transaction and purpose of the escrow arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment of Escrow Agent: Terms of appointment and acceptance by the escrow agent

5. Escrow Amount: Details of the purchase price and any other amounts to be held in escrow

6. Escrow Account: Specifications of the escrow account and its management

7. Deposit and Release Conditions: Conditions for depositing and releasing the escrow funds

8. Duties and Rights of Escrow Agent: Detailed responsibilities and authorities of the escrow agent

9. Representations and Warranties: Statements of fact and assurances from all parties

10. Fees and Expenses: Escrow agent's fees and allocation of transaction expenses

11. Indemnification: Protection and indemnification of the escrow agent

12. Term and Termination: Duration of the agreement and termination provisions

13. Notices: Communication procedures between parties

14. Governing Law and Jurisdiction: Applicable law and courts having jurisdiction

15. Miscellaneous: Standard boilerplate provisions including amendments, severability, etc.

Optional Sections

1. Digital Transaction Provisions: Specific provisions for digital/electronic transfers and communications, necessary when transactions are primarily conducted electronically

2. Multi-Currency Provisions: Additional terms for handling multiple currencies, required for international transactions

3. Dispute Resolution: Detailed arbitration or mediation procedures, recommended for high-value transactions

4. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term or complex transactions

5. Anti-Money Laundering Compliance: Specific provisions for AML compliance, necessary for high-value transactions or when required by regulations

6. Confidentiality: Detailed confidentiality provisions, important when sensitive information is involved

7. Step-In Rights: Rights of parties to step in under specific circumstances, useful in complex transactions

Suggested Schedules

1. Schedule 1 - Purchase Price Details: Detailed breakdown of the purchase price and payment schedule

2. Schedule 2 - Escrow Account Details: Complete banking details and account specifications

3. Schedule 3 - Release Conditions: Detailed conditions and documentation required for release of funds

4. Schedule 4 - Fee Schedule: Detailed breakdown of all fees and expenses

5. Schedule 5 - Required Documents: List of all documents required for completion

6. Appendix A - Form of Release Notice: Template for release instruction to escrow agent

7. Appendix B - Authorized Signatories: List of authorized signatories for each party

8. Appendix C - KYC Requirements: Details of required KYC documentation for all parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions



































Clauses






























Relevant Industries

Real Estate

Information Technology

Manufacturing

Financial Services

Mergers and Acquisitions

Infrastructure

Energy

Telecommunications

E-commerce

Healthcare

Relevant Teams

Legal

Finance

Compliance

Risk Management

Corporate Affairs

Business Development

Procurement

Treasury

Company Secretarial

Operations

Relevant Roles

Legal Counsel

Corporate Lawyer

Compliance Officer

Chief Financial Officer

Finance Manager

Transaction Manager

Business Development Manager

Contract Administrator

Risk Manager

Company Secretary

Escrow Officer

Banking Relationship Manager

Real Estate Manager

Procurement Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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