1. DEPOSIT OF DOCUMENTS AND FUNDS:
Seller and Buyer agree that they will deposit with Escrow Agent all documents, all funds and do cause or allow to be done all other things necessary to enable Escrow Company to comply with the terms of the Purchase Contract and Receipt for Deposit ("Purchase Contract"); including all properly signed amendments and/or supplements thereto (including instructions/directions to Escrow). Buyer and Seller agree to pay all costs incurred by Escrow Agent in handling the escrow and to deposit into escrow all documents and funds necessary to complete the transaction that is subject of the escrow and to enable Escrow Agent to record or deliver these documents. Further Seller and Buyer agree to hold Escrow Agent harmless of any liability and/or responsibility due to any errors or omission by the Seller or the Buyer as to statements furnished hereunder, representations made and/or the conditions of the property. All funds will be in the form of United States dollars. Escrow Agent is instructed to deposit all funds in a non-interest bearing general escrow account in one (1) or more financial institutions doing business in Arizona and whose deposits are federally-insured.
2. WRITTEN INSTRUCTION:
Seller and Buyer agree that no amendment or supplement shall be binding upon Escrow, unless and until made in writing, signed by all parties, and delivered to and accepted by the Escrow Agent. No notice or demand shall be of any effect unless made in writing, signed by the party making the notice on demand and delivered to Escrow Agent.
3. DISBURSEMENT AND RECORDING:
Buyer and Seller instruct Escrow Agent to pay from funds deposited into escrow all amounts necessary to procure documents and all other charges or obligations necessary to consummate this transaction, in accordance with these instructions and the Settlement Statement. Escrow Agent is authorized to act upon any statement furnished to Escrow Agent by a lien holder or its agent, without liability or responsibility for the accuracy of the statement. When these instructions have been complied with and the insurer is willing to issue the requested title insurance policy and when Escrow Agent's fees and charges have been paid, Buyer and Seller instruct Escrow Agent to file, deliver, or record all documents. Disbursement of funds may be in the form of Escrow Agent's check. Unless otherwise provided in writing, escrow fees shall be paid one-half by the Seller and one-half by Buyer.
4. NOTICE OF UNINSURED MONIES:
Pursuant to A.R.S. §6-841.03. Notice is hereby given that the monies deposited into an escrow account are not insured against loss from fraud or theft by the State of Arizona or the United States government. However, escrowed funds are deposited with depositories that are insured by the Federal Deposit Insurance Corporation (FDIC).
5. CLEARANCE OF FUNDS BY ESCROW AGENT:
Escrow Agent is not liable for any loss or impairment of funds while those funds are in the course of collection or while those funds are on deposit in a financial institution if such loss or impairment results from the failure, insolvency or suspension of such financial institution. Notwithstanding any provisions of applicable law, and in Escrow Agent's sole discretion, Escrow Agent is not obligated to disburse any funds represented by check or draft until Escrow Agent is advised by the financial institution in which the check or draft is deposited that such check or draft has been honored.
6. AFFIDAVIT OF REAL PROPERTY VALUE:
Escrow Agent is instructed to execute and file on behalf of Buyer and Seller the affidavit required by Arizona Revised Statutes Section 11-1133, using the sales price as the total consideration if at the time of filing the affidavit has not been executed by the parties.
7. RESIGNATION:
At any time and in its sole discretion, Escrow Agent can resign upon written notice to Buyer and Seller. All money and documents held by Escrow Agent will be returned to the party who delivered them into Escrow.
8. NOTICE OF RIGHT TO EARN INTEREST:
Pursuant to ARS §6-834(D), notice is hereby given of the right to earn interest on escrowed funds. An interest-bearing account may be opened on your behalf, as follows:
You must ask your Escrow Agent to set-up an interest-bearing account on your behalf.
1. You must ask your Escrow Agent to set-up an interest-bearing account on your behalf.
2. You agree to pay the escrow service charge in the amount of One Hundred And No/100 Dollars ($100.00) for establishing such an account.
3. To establish an interest-bearing account, ask for an "Interest Bearing Account Authorization". You may also be asked to complete an IRS Form W9 and/or provide your U.S. Taxpayer Identification Number as may be required by the depository to establish such an account. Any forms requested must be completed and returned to your Escrow Agent before such an account can be opened with the depository.
4. You may contact your Escrow Agent at Navi Title Agency, LLC, 9943 E. Bell Road, Scottsdale, AZ 85260, (480)914-3040, fax: (480)393-8055
As an example, the estimated amount of interest you may earn on a deposit of One Thousand and No/100 Dollars ($1,000.00) for a thirty (30) day period at an estimated savings account interest rate of Two Percent (2%) per annum is One And 67/100 Dollar ($1.67). Interest earned is dependent upon the amount of the deposit, the time of deposit and prevailing interest rate at the time.
9. PRORATIONS:
The proration date shall be close of escrow. Prorations will be calculated on a 365-calendar day basis. All items to be prorated will have been submitted to Escrow Agent prior to close of escrow ad Buyer and Seller agree to hold Escrow Agent harmless as to any items or information not submitted to escrow for proration calculation. Tax Prorations have been calculated. using the most current figure available. Any adjustment necessary because of a change in the figure shall be settled between the parties direct and outside of escrow.
10. INDEMNITY:
Buyer and Seller will pay all costs, damages, attorneys' fees, costs, expenses and liabilities that Escrow Agent may incur or sustain in connection with these instructions, the escrow or any court action or dispute resolution procedure arising from these instructions or the escrow, including without limitation any legal action to enforce collection of its fees, costs or charges, unless caused by the bad faith, willful misconduct or gross negligence of Escrow Agent.
11. EXCLUDED MATTERS:
Unless agreed to specifically in writing by Escrow Agent, Escrow Agent will not investigate and assumes no liability for unrecorded liens, including without limitation mechanics' liens; proposed improvement district liens or assessments; homeowner's association liens; personal property taxes or transfer of personal property; utility charges or deposits; boundary lines or location or condition of improvements; square footage; possessory rights, including without limitation delivery of possession; transfer of utilities; compliance with limitations on the use of property, including without limitation building or zoning ordinances or restrictions; taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property as of the closing of this escrow or which were not disclosed to Escrow Agent; reservations or exceptions in patents; transfers or filings of water rights or water rights applications; treatment or investigation of wood infestation; usury in any loan involved in the escrow; the availability of or charges for water, power, or waste collection; compliance with or violation of any environmental law; the legal or tax consequences of vesting; and the sufficiency or correctness as to form or manner of execution of any document deposited by the Buyer or Seller, their agents or any lender, or the identity, authority or right of any person executing documents.
12. UNCLAIMED AND DORMANT FUNDS:
Dormant funds in the amount of one cent or more as evidenced by stale dated checks, outstanding checks, inactive escrow accounts and account service balances will be maintained at a charge of $25.00 per month, plus any costs to Escrow Agent beginning one hundred eight (180) days from the date the initial check was disbursed or the date the funds became available for disbursement.
13. ERRORS:
Buyer and Seller hereby agree and acknowledge that through the course of doing business, there is the possibility that an error could occur. If an error is discovered after the close of escrow, Buyer and Seller agree to take whatever action necessary to correct said error. This may result in executing documents or providing additional funds due per contractual or lender requirements. Any funds due under this agreement shall be paid within three business days of notification of the error by Navi Title Agency PLLC to the party responsible for payment. If payment is not made in a timely manner, Navi Title Agency PLLC may seek collection of the funds by any means allowed under law.
14. INSPECTIONS, CONDITIONS AND REPAIRS:
Buyer and Seller agree that all inspections, contingencies, conditions, or repairs if any will have been met, satisfied, or waived prior to close of escrow and paid for directly outside of escrow. Buyer and Seller agree to indemnify and hold Escrow Agent harmless from any liability whatsoever regarding inspections or repairs, or any payment or performance to be handled outside of escrow.
15. COPIES:
Escrow Agent is authorized to furnish copies of any documents or papers to the parties' designated real estate agents or lenders. The parties designate their real estate agents as their duly authorized agents for the purpose of accepting ton their behalf documents or notices intended for delivery to the parties.
16. UNJUST ENRICHMENT:
If any party to this escrow receives funds or is credited with funds that they are not entitled to for whatever reason, they agree, upon written demand, to return said funds to the proper party or to the Escrow Agent for disbursement. If suit is brought to enforce the return of said funds, the parties agree to reimburse the prevailing party their reasonable attorney fees.
17. NOTICE OF RIGHT TO RECEIVE A CLOSING PROTECTION LETTER:
In accordance with Arizona Revised Statutes § 6-841.02 notice is hereby given to the Seller and Buyer that in any residential dwelling transaction hereunder that the title insurer may provide a closing protection letter which provides protection to the parties for the loss of escrow money due to fraud or dishonesty of the Escrow Agent. Any request for this letter shall be made in writing to the Escrow Agent, and upon receipt of said request said letter will be issued. A residential dwelling is defined as an owner-occupied structure or an investment property that is designed for residential use by four or fewer families.
