Construction Loan Escrow Agreement Template

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CONSTRUCTION LOAN ESCROW AGREEMENT
Escrow No.:
Date:
Refer to:
To: First American Title Insurance Company, Escrowee
At the request of
hereinafter referred to as "Owner/Borrower",
,
hereinafter referred to as "Lender", will deposit with you at intervals and in installments to be determined by the Lender
and the Borrower, $
being the proceeds of a first mortgage in the amount of $
, covering land located in
County, Insert State and described as:
(See Commitment No. NCS-XXXXXX-MAD)
Commonly known as: Insert Project Legal/address
As Escrowee, you are authorized and directed to disburse the funds hereunder pursuant to statements of amounts due,
approved by the Owner/Borrower, after obtaining such releases and satisfactions of mechanic's liens or waivers of
mechanic's liens and sworn statements of the general contractor, subcontractors and material suppliers required by First
American Title Insurance Company for the purpose of providing the insurance coverage herein specified.
The Inspector/Architect is
and the General Contractor is ___________________________.
There will be monthly disbursements, which are to be made in accordance with the terms and conditions of this escrow
as hereinafter set forth.
I.
Prior to the first disbursement of funds hereunder, the following are requirements of this escrow, to wit:
A.
The Escrowee shall be furnished:
1.
An approval by the Lender of the condition of title to the premises described above;
2.
An approval by the Lender for loan disbursement purposes of the owner's statement and the
general contractor's statement, which are provided at IA3 and IA4 below;
3.
A signed Owner's statement disclosing the various contracts entered into by the Owner and
setting forth the names of the contractors, their addresses, work or materials to be furnished,
amounts of the contracts, amounts paid to date, amounts of current payments and balances due;
4.
A signed General Contractor's statement setting forth in detail all contractors and material
suppliers with whom he has contracted, their addresses, work or material to be furnished,
amounts of the contracts, amounts paid to date, amounts of current payments and balances due.
B.
The Escrowee shall be prepared to furnish to the Lender an ALTA Loan Policy covering the recording date
of the above mortgage and showing the Lender as the insured. Said Policy shall contain no exception for
any lien or right to lien for services, labor, or material imposed by law and not shown by the public
record.

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