Escrow instructions

From Wikinvestor

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."^[1]

The escrow officer is also called the escrow agent, licensed agent, escrow holder, or escrow depository.

Contents 1 Typical instructions 2 Special California rules 3 References 4 External links

Typical instructions

These instructions usually include:

• Who is the escrow holder
• Expected start and end dates for the escrow
• Amount of money and documents to be deposited ^[2]
• How the escrow holder (or escrow agent) is to receive and hold the money
• Conditions to end the escrow
• Authorization for the escrow agent to disburse funds for recording fees, title insurance, etc.
• Proration schedule for the property tax and title insurance
• Payment of prior liens, especially any mortgage. ^[3]

Special California rules

The state of California has a standardized form for any subdivision, pursuant to its law, ^[4] which includes:

1. Subdivision name, location, and tract number
2. Name of escrow depository
3. Notice of completion, with whether that is for a non-cluster subdivision, cluster housing, condominium, or homeowner's association
4. Estimated completion date
5. Information about the subdivider
6. Information about the escrow despository. ^[5]

References

1. ↑ Diseree Soteres, realtor, offciial web page escrow instructions page.
2. ↑ These first three listed are fromChicago Title Co. web site.
3. ↑ These five are from supra, at [1].
4. ↑ Cal. B&P Code section 11018.5(a), Civil Code section 3093.
5. ↑ PDF form from California for subdivisions.

External links

• For a sample form of escrow instructions, see: [2]
• For a more detailed description of such forms, also see:[3]
• For the California subdivider form, see [4] (PDF required).