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HomeMy WebLinkAboutKabangu_Kumbu Escrow Agreement, 514 Johnson Street - 4.3.2023ESCROW AGREEMENT Prepared by: Charles P. Augustine, 531 Commercial, Ste 250, Waterloo, Iowa (319) 232-3304 This agreement is dated this 6th day of April, 2023, by and between Dieu I. Kabangu and Ange Kumbu (hereinafter collectively "Buyer"), and City of Waterloo (hereinafter "Seller"); WITNESSETH: WHEREAS, Seller has agreed to sell and Buyer has agreed to buy, pursuant to the terms of one certain purchase agreement between the parties, real estate locally known as 514 Johnson St., Waterloo, IA 50702, and legally described as Lot 2, Block 13, Leavitt, Johnson and Miller Addition to Waterloo, Iowa (hereinafter the "Real Estate"); and WHEREAS, the parties desire to close on this real estate transaction pursuant to the terms of the purchase agreement, but acknowledge that finish grade and hydroseeding work (hereinafter the "Remaining Work") remains to be completed as to the Real Estate and that the Remaining Work and the costs thereof are Seller's responsibility but cannot be completed prior to closing; and WHEREAS, the parties have agreed that the Remaining Work shall be completed by no later than July 6, 2023 (hereinafter the "Completion Date"); and WHEREAS, the parties agree that the party completing the closing between the parties as to the sale of the Real Estate (hereinafter "Closing Agent") shall withhold from Seller's closing proceeds the total sum of $360.00, and shall deliver said sum to Klatt, Augustine & Rastede, P.C. (hereinafter "Escrow Agent") immediately after closing and Escrow Agent shall hold said sum in escrow until such time as Escrow Agent receives written directions for the release of the escrowed funds as described herein; and WHEREAS, Buyer's purchase money lender, GreenState Credit Union (hereinafter "Lender"), is requiring that the parties enter into this agreement and/or has consented to the terms of this Agreement. NOW THEREFORE, for valuable consideration, receipt of which is hereby acknowledged, the parties agree as follows: 1. Closing on the real estate transaction between the parties shall take place on or about the 6th day of April, 2023. 2. In connection with said closing, Closing Agent shall withhold from Seller's closing proceeds the total sum of $360.00 and shall deliver said sum to Escrow Agent immediately after closing and Escrow Agent shall hold said sum in escrow. 3. Seller shall take all steps necessary and reasonable to ensure that the Remaining Work is completed in its entirety by no later than the Completion Date. After the Completion Date, if Seller has failed to complete the Remaining Work, Lender may take steps to do so and have said work paid for from the escrowed funds; or Buyer may do so if Lender does not begin to take said steps within 10 days after Buyer has informed Lender of Buyer's intent to take said steps. 4. Upon completion of the Remaining Work, Escrow Agent shall deliver the escrowed funds pursuant to the written directions of Lender or any representative of Lender and the parties agree that Escrow Agent may rely on any such written directions without the necessity of seeking any further information from any other party. In this regard, it is understood by the parties to this Agreement that the escrowed funds may be used to complete any portion of the Remaining Work not timely completed by Seller. 5. The parties understand that the escrowed funds will be held in an IOLTA law firm trust account and that any interest that may be earned on the escrowed funds will be paid over to the State of Iowa pursuant to Iowa law. 6. The parties agree to indemnify and hold harmless Escrow Agent from its performance of its obligations, or any actions stemming from its performance of its obligations as set forth in this agreement, and further specifically agree that Escrow Agent shall be held entirely harmless from the delivery of the escrowed funds pursuant to the written directions of Lender or any representative of Lender. BUYER: SELLER: QuerEat 9-fart Dieu I. Kabangu City of Waterloo Ange Kumbu GreenState Credit Union, "Lender" hereunder, does hereby acknowledge its consent to the terms of this agreement.