Escrow Instructions
Written instructions to the escrow company detailing how to process the transaction, including handling of funds, documents, and conditions for closing.
When Its Used
Prepared by the escrow company after opening escrow. Typically sent to all parties within 3-5 days of an accepted offer.
Key Sections
Purchase price and deposit amounts; Prorations (taxes, HOA dues); Title insurance orders; Closing date; Distribution of funds; Document recording instructions
Common Mistakes
Not reviewing for accuracy against the purchase agreement; Missing deadline to sign and return; Incorrect proration dates; Wrong vesting for new title
Pro Tip
Compare escrow instructions carefully against the purchase agreement. Flag any discrepancies immediately. Verify the buyer's vesting choice is correctly documented.
