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Escrow Holdback Agreement Template for Singapore

An Escrow Holdback Agreement under Singapore law is a tripartite agreement where funds or assets are held by a trusted third party (escrow agent) pending the fulfillment of specified conditions. This document, governed by Singapore's Trust Companies Act and Contracts Act, establishes the terms for holding and releasing the escrow funds, defines the rights and obligations of all parties, and specifies the release conditions. It provides security and risk mitigation for transactions where parties need assurance of performance or compliance with contractual obligations.

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What is a Escrow Holdback Agreement?

The Escrow Holdback Agreement is commonly used in Singapore for transactions requiring security and assured performance. This document is essential when parties need a trusted third party to hold funds or assets until certain conditions are met. It's particularly relevant in business acquisitions, real estate transactions, and complex commercial arrangements where there may be post-closing adjustments or warranty claims. The agreement, compliant with Singapore law, details the escrow mechanism, release conditions, agent's duties, and dispute resolution procedures.

What sections should be included in a Escrow Holdback Agreement?

1. Parties: Identification of all parties including depositor, beneficiary, and escrow agent

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

3. Definitions: Key terms used throughout the agreement

4. Appointment of Escrow Agent: Terms of appointment and agent's acceptance

5. Escrow Funds: Description of funds/assets to be held in escrow

6. Release Conditions: Specific conditions for releasing the escrow funds

7. Escrow Agent's Duties: Rights, obligations, and responsibilities of the escrow agent

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

9. Fees and Expenses: Escrow agent's compensation and reimbursement terms

10. Liability and Indemnification: Limitations of liability and indemnification provisions

11. Governing Law: Specification of Singapore law as governing law and jurisdiction

What sections are optional to include in a Escrow Holdback Agreement?

1. Investment of Escrow Funds: Terms for investing held funds during the escrow period

2. Cross-Border Provisions: Additional terms for international transactions and compliance requirements

3. Dispute Resolution: Specific procedures for resolving disputes, including mediation and arbitration provisions

4. Force Majeure: Provisions for unforeseen circumstances affecting performance of obligations

5. Anti-Money Laundering Compliance: Specific provisions regarding AML compliance and reporting requirements

What schedules should be included in a Escrow Holdback Agreement?

1. Schedule 1 - Release Instructions: Detailed instructions and procedures for releasing escrow funds

2. Schedule 2 - Fee Schedule: Detailed breakdown of escrow agent's fees and payment terms

3. Schedule 3 - Form of Release Notice: Template for requesting release of funds from escrow

4. Appendix A - KYC Documentation Requirements: List of required identification and verification documents

5. Appendix B - Investment Guidelines: Guidelines for investment of escrow funds if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Singapore

Document Type

Escrow Agreement

Cost

Free to use

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