Escrow Requirement; Escrow Items Sample Clauses
The 'Escrow Requirement; Escrow Items' clause establishes the obligation for certain funds or documents to be held by a neutral third party (the escrow agent) until specific conditions of the agreement are met. Typically, this involves the buyer depositing earnest money, property taxes, insurance premiums, or other required payments into an escrow account, which the agent manages according to the contract's terms. This clause ensures that all parties fulfill their obligations before the transaction is finalized, thereby reducing risk and providing security for both sides in the transaction.
Escrow Requirement; Escrow Items. Borrower must pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum of money to provide for payment of amounts due for all Escrow Items (the “Funds”). The amount of the Funds required to be paid each month may change during the term of the Loan. Borrower must promptly furnish to Lender all notices or invoices of amounts to be paid under this Section 3.