ESCROW HOLDBACK AGREEMENT (ALABAMA)

1. PARTIES

[BUYER/LANDLORD], [SELLER/TENANT], and [ESCROW AGENT NAME] ("Escrow Agent").

2. PURPOSE

Escrow Agent will hold $[AMOUNT] (the "Holdback") from the closing proceeds to secure completion of [REPAIRS/CONDITIONS] at [PROPERTY ADDRESS].

3. FUNDING AND INTEREST

Holdback deposited at closing; interest (if any) to [PARTY/SHARED] unless forfeited as set forth below.

4. RELEASE CONDITIONS

• Release to [SELLER/TENANT] upon Escrow Agent's receipt of: (a) certification or invoices showing completion of [WORK]; and (b) evidence of approvals/permits/inspections, if required.
• If not completed by [DEADLINE], then: [___] Release to [BUYER/LANDLORD]; or ☐ Partial release per cost-to-complete schedule.

5. DISPUTES

Escrow Agent may hold funds pending joint instructions or court order. Parties will split any interpleader costs unless a court allocates otherwise.

6. ESCROW AGENT DUTIES

Ministerial only; not liable except for willful misconduct or gross negligence. May rely on written instructions believed genuine.

7. FEES

Escrow fees of $[AMOUNT] paid by ☐ Buyer ☐ Seller ☐ Split.

8. GOVERNING LAW / VENUE

Governing law: Alabama. Venue: [COUNTY], Alabama. Dispute resolution: ☐ Court ☐ Arbitration (attach clause if selected).

9. MISCELLANEOUS

Notices, counterparts/e-signatures, entire agreement, amendments in writing.

10. SIGNATURES

text
[BUYER/ LANDLORD] [SELLER/ TENANT] ESCROW AGENT
By: ______________________ By: ______________________ By: ______________________
Name/Title: __________________ Name/Title: __________________ Name/Title: __________________
Date: ____________________ Date: ____________________ Date: ____________________
[// GUIDANCE: Align with purchase agreement timelines; include cost-to-complete estimate; confirm Alabama Real Estate Commission escrow holder requirements; add indemnity to protect escrow agent against third-party claims.]