• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Legal Templates

Legal Templates
  • Business Forms
    Business & Contracts

    All of our legal contracts and documents are drafted and regularly updated by attorneys licensed in their respective jurisdictions, paralegals, or subject matter experts. Save your hard-earned money and time with Legal Templates.

    Top Business Forms
    Business Formation
    • Business Plan
    • LLC Operating Agreement
    • Articles of Incorporation
    • Corporate Bylaws
    • Buy-Sell Agreement
    Business Operations
    • Business Contract
    • Partnership Agreement
    • Non-Disclosure Agreement
    • Release of Liability
    • Letter of Intent
    Sales and Payments
    • Purchase Agreement
    • Sales Agreement
    • Invoice
    • Purchase Order
    • Business Purchase
    Employment and HR
    • Employment Contract
    • Employment Offer
    • Employment Verification
    • Freelance Contract
    • Non-Compete Agreement
    View All Business Forms
  • Real Estate Forms
    Real Estate

    All of our legal contracts and documents are drafted and regularly updated by attorneys licensed in their respective jurisdictions, paralegals, or subject matter experts. Save your hard-earned money and time with Legal Templates.

    Top Real Estate Forms
    Landlords
    • Lease Agreement
    • Property Management
    • Eviction Notice
    • Late Rent Notice
    • Lease Termination
    Tenants
    • Room Rental
    • Sublease Agreement
    • Roommate Agreement
    • Notice to Vacate
    • Early Lease Termination
    Home Ownership
    • Real Estate Purchase Agreement
    • Mortgage Deed
    • Quitclaim Deed
    • Deed of Trust
    • Moving Checklist
    View all Real Estate Forms
  • Personal & Family Forms
    Personal and Family

    All of our legal contracts and documents are drafted and regularly updated by attorneys licensed in their respective jurisdictions, paralegals, or subject matter experts. Save your hard-earned money and time with Legal Templates.

    Top Personal and Family Forms
    Estate Planning
    • Power of Attorney
    • Last Will & Testament
    • Living Will
    • Advance Directive
    • DNR Form
    Personal Finance
    • Bill of Sale
    • Loan Agreement
    • Purchase Agreement
    • Promissory Note
    • Sales Agreement
    Family Matters
    • Parenting Plan
    • Child Travel Consent
    • Divorce Agreement
    • Separation Agreement
    • Prenuptial Agreement
    Affidavits
    • General Affidavit
    • Gift Affidavit
    • Affidavit of Identity
    • Affidavit of Residence
    • Affidavit of Death
    View All Personal Forms
  • Support
    Resources
    • Business
    • Real Estate
    • Personal and Family
    • Financial
    • Estate Planning
    Support
    • About Us
    • Careers
    • Contact Us
    • All Legal Documents

    Monday - Friday | 9AM - 7PM EDT

    (855) 335-9779

  • Sign In
  • :email

Home Real Estate Escrow Holdback Agreement Addendum

Escrow Holdback Agreement Addendum

Use our escrow holdback agreement addendum to set guidelines for money held back in escrow until the seller fulfills closing duties.

Updated April 5, 2023 | Legally reviewed by Susan Chai, Esq.

An Escrow Holdback Agreement Addendum is common in real estate transactions to set guidelines for money held back in escrow until the seller fulfills all of their duties after closing.

It outlines the seller’s obligations to collect the funds in escrow.

Table of Contents
  • What Is an Escrow Holdback Agreement Addendum?
  • When Do You Need an Escrow Holdback Agreement Addendum?
  • How To Write an Escrow Holdback Agreement Addendum
  • Escrow Holdback Agreement Addendum Frequently Asked Questions
  • Escrow Holdback Agreement Addendum Sample

What Is an Escrow Holdback Agreement Addendum?

An escrow holdback agreement addendum is a legal contract that “holds back” additional money or a portion of the purchase price at closing.

The funds are held in escrow until the seller completes specific tasks or improvements related to the property. The money is released once the seller completes each of the escrow holdback agreement addendum requirements.

Often, a third-party escrow agent holds the funds subject to the escrow holdback agreement addendum. This third party might be a lender, escrow agent, or title company that holds the funds in escrow.

When Do You Need an Escrow Holdback Agreement Addendum?

There are several situations where you may need an escrow holdback agreement addendum. These are especially common in real estate purchases when conditions must occur before the sale is finalized.

Situations for using an escrow holdback agreement addendum commonly include:

  • When the seller must repair, finish, or complete tasks related to the real property
  • Regulatory or governmental approval is holding up the sale of the property
  • Issues with the deed or title must be resolved
  • A delay occurs with the financing, mortgage, or another critical part of the real estate transaction
  • Any other agreements between the parties that must be completed before the sale can finalize

Any of these situations could lead to you needing an escrow holdback agreement addendum. 

How To Write an Escrow Holdback Agreement Addendum

Writing your escrow holdback agreement addendum is easy when you follow each of these steps:

Step 1 – Customize and Download Your Template

The escrow holdback agreement addendum template on this page makes it easy to customize with your details and requirements. The template is available in both Microsoft Word and PDF formats. 

Once completed, you can download the form for your use. You can then attach it to a real estate purchase agreement or other real estate transaction document.

Step 2 – Identify All Parties To the Escrow Holdback Agreement Addendum

Your document should identify all parties relevant to your escrow holdback agreement addendum.

This includes the buyer, seller, and any third-party escrow agent that might be part of the agreement.

Contact information should include the following:

  • Each party’s full name and title, if applicable
  • A company’s full name, if any party is a business
  • Each party’s address
  • Phone number and email information for each party

Step 3 – Detail the Conditions for the Release of Escrow Funds

An escrow holdback agreement addendum sets the conditions the seller must meet before the escrowed funds may be released. It must clearly outline these obligations and what will occur when those conditions are met. 

The document should describe what the seller must do to fulfill the agreement and any relevant dates by which those actions must be completed.

Add any information as to the steps required of the seller as part of the escrow holdback agreement addendum.

Step 4 – Include the Amount of Money Held in Escrow

Under an escrow holdback agreement addendum, a certain amount of money is held back in escrow until the seller completes each obligation.

Your document should clearly state how much money is held in escrow until those conditions are met.

Your template will include legal language to cover what may happen with the funds if the conditions are met.

Step 5 – Define the Fees and Responsibilities of the Escrow Agent

Your escrow holdback agreement addendum should outline critical details about the escrow agent and their role in this real estate transaction.

It should include legal clauses that define the following:

  • What fees the escrow agent is owed (for example, a flat fee, percentage, etc.)
  • All duties and obligations of the escrow agent
  • Identifying information for the escrow agent 
  • Any other information that governs the escrow agent’s conduct in the transaction

Step 6 – Add Dated Signature Information

Your escrow holdback agreement addendum should conclude with a signature block for the buyer, seller, and escrow agent. Each party should have a separate line for their:

  • Full printed name
  • Signature
  • Date the signature occurred

Failure to properly sign this document may render it invalid. Ensure this section is completed correctly and printed names are fully legible if handwritten.

Escrow Holdback Agreement Addendum Frequently Asked Questions

What are escrow holdback terms?

Escrow holdback terms refer to the conditions that must be satisfied before the funds are released.

These may include terms such as:

  • Repairs to the real property
  • Landscaping improvements
  • Painting or other aesthetic changes to the property
  • Replacement of defective or broken items on the property

How long can money be held in escrow after closing?

This answer varies widely and depends on your situation. Typically, escrow is approximately 30 days. However, it can range from one week to several months.

The details surrounding the parties and escrow holdback agreement addendum typically determine the length of escrow.

What is an example of a holdback clause in real estate?

A simple example of a holdback clause in real estate would read:

“Seller and Buyer agree to hold back funds and place in Escrow at Closing, per the following terms and conditions, and to be released only upon satisfaction of each of the following conditions:.”

Escrow Holdback Agreement Addendum Sample

Below is an example of an escrow holdback agreement addendum.

escrow holdback agreement addendum

DOWNLOAD PDF
DOWNLOAD MS WORD

Related Home Ownership Documents

  • Real Estate Purchase Agreement Addendum: Learn how a real estate purchase agreement addendum can help you make necessary changes to your existing purchase agreement.
  • Real Estate Purchase Agreement Amendment: Create a real estate amendment to a purchase agreement. This document helps you change terms of a real estate purchase contract.
  • Moving Checklist: A template for effectively accounting for properties and other considerations before and after moving.
escrow holdback agreement addendum Preview PDF

Escrow Holdback Agreement Addendum

Create Your Escrow Holdback Agreement Addendum in Minutes!

Legal Documents
  • All Legal Forms
  • Business Forms
  • Real Estate Forms
  • Personal and Family Forms
Popular Forms
  • Lease Agreements
  • Power of Attorney Forms
  • Eviction Notice
  • Living Will
  • Non-Disclosure Agreement
Resources
  • Legal Resources
  • Business
  • Real Estate
  • Personal & Family
  • Estate Planning
  • Financial
Company
  • Pricing
  • About Us
  • Careers
  • Contact Us
  • Partner With Us
Users
  • Account
  • Terms of Use
  • Privacy Policy
  • Do Not Sell My Personal Information
McAfee - Together is power.
Trustpilot
BBB Accredited Business

(855) 335-9779, Monday-Friday, 9AM - 7PM EDT

Facebook Twitter LinkedIn youtube Youtube

Copyright 2023 Legal Templates LLC. Legal Templates LLC is not a lawyer, or a law firm and does not engage in the practice of law. Legal Templates cannot and does not provide legal advice or legal representation. All information, software and services provided on the site are for informational purposes and self-help only and are not intended to be a substitute for a lawyer or professional legal advice. Use of this site is subject to our Terms of Use. Legaltemplates.net is owned and operated by Resume Technologies Limited, London with offices in London United Kingdom.”

Esc
escrow holdback agreement addendum

The document above is a sample. Please note that the language you see here may change depending on your answers to the document questionnaire.

Fill in the details

Thank you for downloading one of our free legal templates!

Would you leave us a review?

We hope you've found what you need and can avoid the time, costs, and stress associated with dealing with a lawyer.

A review would mean the world to us (it only takes about 15 seconds).

Please check your download folder for MS Word or open tabs for PDF so you can access your FREE Legal Template Sample

Thanks again, and good luck!

Leave My Review