(A) In situations where § 157.04(C) of this chapter applies, an escrow agreement is required to be established and approved by the County Environmental Health Office prior to closing or property transfer. The parties to the transfer or closing as well as the escrow agent are responsible for ensuring that the escrow agreement complies with this chapter. The approval from the County Environmental Health Office shall be limited to ensuring that the escrow agreement meets the standards outlined in this section. The County Environmental Health Office shall not provide or publish a sample escrow agreement.
(B) The escrow agreement shall at minimum include the following terms and conditions.
(1) The agreement shall recite the cash amount, irrevocable letter of credit amount, or similar liquid negotiable instrument amount that is being escrowed. The amount to be escrowed shall at a minimum be at least one and one-half times a reasonably calculated bid to meet all septic system inspection, upgrade or replacement costs. The County Environmental Health Officer shall have the discretion to determine whether or not the amount to be escrowed is reasonably adequate.
(2) The agreement shall specify a date by which time a certificate of compliance must be obtained, but in no case may the date exceed nine months from the date of closing or property transfer.
(3) The agreement shall clearly identify the person acting as the escrow agent, the company acting as the escrow holder, including the person’s and institution’s full name, address and phone number.
(4) The agreement must identify the banking institution where the funds will be held.
(5) The escrow agreement shall specify that funds can only be released by the escrow agent upon the written approval of the County Environmental Health Office. The County Environmental Health Office can only authorize the release of funds when the property is fully compliant with the terms of this chapter and a certificate of compliance had been filed with the County Environmental Health Office.
(6) The agreement shall specify who is supplying or arranging for the escrow money or escrow surety instrument.
(7) The agreement shall be signed by the seller, the buyer and the escrow agent and dated.
(8) Prior to the approval of any escrow agreement, the County Environmental Health Office may require that the buyer or seller obtain and attach a copy of a septic system permit.
(Ord. 11-02, passed 8-9-2011)