An escrow is an arrangement on which a neutral third party,
called an escrow holder, holds legal documentation and funds
on behalf of a buyer and seller.
The escrow agent works closely with you,
your realtor and lender to assure that
the sale conditions are complied within
the time period called for in the
Residential Purchase Agreement and Joint
Escrow Instructions.
After all parties have executed these
documents, escrow prepares an Addendum
to the Residential Purchase Agreement
and Joint Escrow Instructions.
Escrow then distributes them according
to the buyers and sellers instructions.
Both the buyer and the seller rely on
the escrow holder to carry out
faithfully their mutually consistent
instructions relating to the transaction.
Escrow holder is bound by law to notify
both parties if the instructions given
are not mutually consistent or cannot be
carried out. These instructions are
drawn by the Escrow Officer, and signed
by the buyer and seller. Since the
escrow instructions are not as detailed
as the Purchase Contract, the
information contained in the
instructions is intended to direct the
Escrow Officer in the specific steps
that are to be completed through the
escrow instruction.
