In real estate transactions, Escrow Instructions are written directions signed by both the buyer and the seller that authorize the escrow agent to carry out the steps required to complete the transfer of real property. These instructions outline the conditions that must be satisfied before the escrow agent may release funds, deliver documents, and record the deed.
Escrow instructions typically address matters such as purchase price, financing terms, prorations, contingencies, and the responsibilities of each party. They serve as the escrow agent’s authority to act and help ensure that the transaction is completed accurately and in accordance with the parties’ agreement.
