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.
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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. Escrow is a legal arrangement in which an asset (such as Cash, Real property or other tangible assets is deposited into safekeeping (e Title insurance in the United States is Indemnity Insurance against financial loss from defects in title to Real property and from the invalidity
- Proration schedule for the property tax and title insurance
- Payment of prior liens, especially any mortgage. Pro rata is an adverb or adjective meaning in proportion. The term is used in many legal and economic contexts and sometimes spelled pro-rata. Property tax, or millage tax, is an Ad valorem tax that an owner pays on the value of the property being taxed A mortgage is the pledging of a property to a Lender as a security for a Mortgage loan. [3]
Special California rules
The state of California has a standardized form for any subdivision, pursuant to its law, [4] which includes:
- Subdivision name, location, and tract number
- Name of escrow depository
- Notice of completion, with whether that is for a non-cluster subdivision, cluster housing, condominium, or homeowner's association
- Estimated completion date
- Information about the subdivider
- Information about the escrow despository. The United States of America —commonly referred to as the California ( is a US state on the West Coast of the United States, along the Pacific Ocean. In Real estate, a lot is a tract or parcel of Land owned or meant to be owned by some Owner (s A condominium, or condo, is a form of Housing tenure and other Real property where a specified part of a piece of real estate (usually of an apartment A homeowners' association (abbrev HOA) may be A legal entity created by a real estate developer for the purpose of developing managing and selling a community [5]
References
- ^ Diseree Soteres, realtor, offciial web page escrow instructions page.
- ^ These first three listed are fromChicago Title Co. web site.
- ^ These five are from supra, at [1].
- ^ Cal. B&P Code section 11018. 5(a), Civil Code section 3093.
- ^ 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).
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