Escrow
Instructions
Escrow
instructions are written documents, signed by the parties giving
them, which direct the escrow officer in the specific steps to be
completed so the escrow can be closed.
Typical
instructions include:
- The
method by which the escrow holder is to receive and hold the
purchase price to be paid by the buyer.
- The
conditions under which a lapse of time or breach of purchase
contract provision will terminate the escrow without a
closing.
- The
instruction and authorization to the escrow holder to disburse
funds for recording fees, title insurance policy, real estate
commissions, and any other closing costs incurred through
escrow.
- Instructions
as to the proration of insurance and taxes.
- Instructions to the escrow holder on the
payment of prior liens and charges against the property and
distribution of the net sale proceeds.
Since
the escrow holder can only follow the instructions as stated, and
may not exceed them, it is extremely important that the
instructions be stated clearly and be complete in all details.
Next
|
