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2023 Drafting escrow agreements in business and commercial transactions

Total Credits: 1.2 Self Study

Practice Area:
Business & Corporate |  Commercial / Collections / Consumer
Audio and Video


Recording available after original program date, 7/27/2023.

Every escrow agreement has a degree of intrinsic uncertainty.  Whether the agreement is for the release of money, property title, software code, or something else, the escrow agent must determine whether certain conditions have been met before releasing the property held in escrow.  That involves a degree of judgement, and like all judgments, subject to dispute.  In this sense, escrow agreements, which are intended to limit risk and enhance the certainty of a transaction, introduce another layer of risk. This puts a priority on carefully drafting the material details of the underlying transaction in as clear terms as possible.This program will provide you with a practical guide to drafting escrow agreements in transactions.

•    Defining conditions for release of property in basic, clear, explicit terms to reduce risk
•    Drafting release instructions to tightly synchronize with the underlying transaction
•    Inherent risks involved with escrow agent determinations
•    Co-mingled and held in trust funds v. segregated funds
•    Timing – how drafting too early might miss key terms in the underlying agreement
•    Choosing the right escrow agent depending on the nature of the transaction
•    Reducing escrow agent through E&O or other insurance

Note: This material qualifies for self-study credit only. Pursuant to Regulation 15.04.5, a lawyer may receive up to six hours of self-study credit in a reporting year. Self-study programs do not qualify for ethics, elimination of bias or Kansas credit.


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