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Escrow Agreement (Real Estate)
"I need a Real Estate Escrow Agreement for the purchase of a commercial property in Jakarta, where the buyer is a foreign corporation and the escrow amount of USD 2.5 million will be held by Bank Mandiri, with completion scheduled for March 2025."
1. Parties: Identification of all parties: Seller, Buyer, and Escrow Agent (typically a bank or licensed escrow service provider in Indonesia)
2. Background: Context of the agreement, including the proposed real estate transaction and purpose of the escrow arrangement
3. Definitions: Definitions of key terms used throughout the agreement, including property description, escrow funds, completion date, etc.
4. Appointment of Escrow Agent: Formal appointment of the escrow agent and acceptance of the appointment
5. Escrow Funds: Details of the funds to be held in escrow, including amount, payment method, and account details
6. Escrow Agent's Duties: Comprehensive list of the escrow agent's responsibilities, including fund management and document handling
7. Release Conditions: Specific conditions that must be met for the release of escrow funds or documents
8. Completion Mechanism: Step-by-step process for completing the transaction and releasing the escrow
9. Escrow Agent's Liability: Limitations of liability and indemnification of the escrow agent
10. Fees and Expenses: Details of escrow agent's fees and allocation of costs
11. Termination: Circumstances under which the agreement can be terminated and the consequences
12. Notices: Process and requirements for giving formal notices under the agreement
13. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction for disputes
14. General Provisions: Standard boilerplate clauses including amendments, waiver, severability, etc.
1. Multiple Properties: Additional provisions for cases involving multiple properties with separate completion requirements
2. Foreign Investment Provisions: Special provisions required when the buyer is a foreign investor, including compliance with Indonesian foreign investment laws
3. Staggered Payment Arrangements: Provisions for cases where the escrow amount is to be paid in installments
4. Currency Exchange Provisions: Special provisions for transactions involving foreign currency exchange
5. Third Party Rights: Provisions addressing rights of third parties such as existing tenants or mortgage holders
6. Tax Provisions: Specific arrangements for handling tax payments and documentation through escrow
7. Force Majeure: Provisions dealing with unforeseen circumstances preventing completion
8. Electronic Documentation: Provisions for handling electronic documents and digital signatures if applicable
1. Schedule 1 - Property Details: Detailed description of the property including certificate numbers, boundaries, and encumbrances
2. Schedule 2 - Payment Schedule: Detailed breakdown of payment amounts, timing, and release conditions
3. Schedule 3 - Completion Documents: List of all documents required for completion of the transaction
4. Schedule 4 - Escrow Agent's Fees: Detailed breakdown of all fees and charges
5. Schedule 5 - Required Certifications: List of required government certificates and permits
6. Appendix A - Form of Release Notice: Standard form for instructing release of escrow funds
7. Appendix B - Property Documentation: Copies of relevant property certificates and documentation
8. Appendix C - Know Your Customer Requirements: Documentation requirements for anti-money laundering compliance
Authors
Real Estate
Banking & Financial Services
Property Development
Construction
Hospitality
Retail
Industrial & Manufacturing
Commercial Property
Residential Property
Legal Services
Legal
Real Estate
Compliance
Property Management
Corporate Development
Investment
Operations
Risk Management
Finance
Business Development
Real Estate Manager
Property Developer
Legal Counsel
Compliance Officer
Real Estate Broker
Property Manager
Bank Manager
Escrow Officer
Land Deed Official
Property Lawyer
Transaction Manager
Real Estate Investment Manager
Chief Legal Officer
Real Estate Director
Development Manager
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