Parties and recitals
The date of the agreement, the Seller, Lender and Escrow Agent, the project location and name, and a table of each unit's address, lot number, Veteran-purchaser, reasonable value estimated by VA and sales price.
26-1849
Escrow Agreement for Postponed Exterior Onsite Improvements
- Agency
- VA
- Revision
- May 2005
- Fillable fields
- 233
- Pages
- 4
- Official source
- VA form page
- Checked
- October 20, 2026
VA Form 26-1849: Escrow Agreement for Postponed Exterior Onsite Improvements
VA Form 26-1849 is the U.S. Department of Veterans Affairs Escrow Agreement for Postponed Exterior Onsite Improvements. It is an agreement between a Seller, a Lender and an Escrow Agent. It covers a seller who obtained Certificates of Reasonable Value from VA but, due to conditions beyond its control, cannot yet complete certain exterior onsite improvements on homes sold to Veteran-purchasers. The respondent burden note says the information is needed to help the Veteran purchaser obtain occupancy of a home prior to the completion of exterior onsite improvements.
The form says the agreement is authorized by law and that, while the parties are not required to execute it, their cooperation is needed to enable the Veteran-purchasers to obtain immediate occupancy. The Seller agrees to a completion date and deposits either a cash escrow or an irrevocable commercial letter of credit, released as VA's Loan Guaranty Officer approves the completed work. A schedule lists the postponed items and their cost, followed by signature blocks and instructions.
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What's on VA Form 26-1849
Paragraphs 1 to 3: the Seller's promises
Complete the improvements by a set date under the Certificate of Reasonable Value, plans and specifications, VA Minimum Property Standards and local requirements, the higher governing; pay for labor and material; be personally liable.
Paragraph 4A: cash escrow
The sum deposited with the Escrow Agent, paid to the Seller once the Loan Guaranty Officer advises the work is satisfactorily completed and no mechanics' liens can attach, or used to complete the work if the Seller fails.
Paragraph 4B: commercial letter of credit
An irrevocable letter of credit from a commercial bank in place of cash, with opinions of the General Counsel of the issuing bank and of the Escrow Agent attached, and the Escrow Agent's power to complete the work.
Paragraphs 5 and 6 and signatures
Who may enforce the agreement, the Escrow Agent's release and its prior lien on the funds for costs, including court costs and reasonable attorney's fees, then dated signature blocks with titles for the Seller, Lender and Agent.
Schedule of improvements and instructions
Lines 1 to 10 list each postponed item and its cost, Line 11 the total, Line 12 one-half of Line 11 (minimum) and Line 13 the total escrowed, with an allocation by lot. The instructions cover inspections and disbursement.
How VA Form 26-1849 is completed
- 1
Name the parties and units
Enter the date, the Seller, Lender and Escrow Agent, the project location, and each unit with its Veteran-purchaser, VA reasonable value estimate and sales price.
- 2
Set the completion date
Enter the date in Paragraph 1 by which the Seller agrees to complete the improvements.
- 3
Fill in the schedule
List each postponed item and its cost, total them on Line 11, enter one-half (minimum) on Line 12 and the total amount escrowed on Line 13. Then allocate the totals by lot number.
- 4
Choose cash or letter of credit
Enter the cash sum deposited under Paragraph 4A, or the letter of credit number, issuing bank and amount under Paragraph 4B.
- 5
Sign for each party
The Seller, Lender and Agent each date and sign their block with titles. The form says the parties execute it with their corporate seals affixed.
- 6
Request inspections
For partial disbursement, the instructions say VA or FHA, whichever agency made the previous inspections, is notified when each scheduled item is completed and ready for inspection.
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Disbursement and edition
Case numbers
The schedule page has spaces for a VA case number and an FHA case number. The form prints no mailing address.
Basis of disbursement
The instructions say escrowed funds may be disbursed on the basis of 90 percent of the amounts set forth for any scheduled item once VA notifies that it is acceptably complete. The withheld 10 percent may be disbursed after all the work is acceptably complete and the agreement's other requirements are met.
VA's right to delay
VA reserves the right to refuse, or to delay, acceptance of any work which is subject to damage in executing other work by delay in completing such other work.
Edition
The May 2005 edition says existing stocks of the April 1999 edition will be used. It carries OMB Approved No. 2900-0320 and an estimated respondent burden of 30 minutes.
Related forms
26-1839
Compliance Inspection Report
43 fields, 2 pages
26-1859
Warranty of Completion of Construction
14 fields, 1 page
26-1805
Request for Determination of Reasonable Value (Real Estate)
67 fields, 2 pages
26-1852
Description of Materials
644 fields, 6 pages
26-1820
Report and Certification of Loan Disbursement
111 fields, 3 pages
Who uses VA Form 26-1849?
The agreement names three parties and the people it is made for.
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Questions about Form 26-1849
Who signs VA Form 26-1849?
The Seller, the Lender and the Escrow Agent, as the three parties to the agreement, each with a dated signature block and titles. There is no signature block for the Veteran-purchaser.
Is signing the agreement required?
The form says it is authorized by law (38 U.S.C. 210) and that, while the parties are not required to execute it, their cooperation is needed to enable the Veteran-purchasers to obtain immediate occupancy of the homes.
How is the escrow amount worked out?
The schedule totals the cost of postponed improvements on Line 11 and adds one-half of that amount (minimum) on Line 12. Line 13, the total amount escrowed, is the sum of Lines 11 and 12.
Can a letter of credit replace cash?
Paragraph 4B lets the Seller furnish an irrevocable commercial letter of credit to the Escrow Agent in lieu of cash escrow, with opinions of the General Counsel of the issuing bank and of the Escrow Agent attached.
What if the Seller does not finish the work?
Under a cash escrow, the Lender, with the approval of VA's Loan Guaranty Officer, may contract with a third party to complete it from the escrowed funds. Under a letter of credit, the Escrow Agent may complete it after written approval from the Loan Guaranty Officer. In both cases the Seller agrees to supply any further sums needed.
How are escrowed funds released?
The instructions say funds may be disbursed on the basis of 90 percent of the amount for a scheduled item once VA notifies that the item is acceptably complete, with the withheld 10 percent paid after all the work is acceptably complete and the agreement's other conditions are met.