What are escrow instructions?

Escrow instructions refer to the set of documents that outline a contractual agreement between a buyer and seller for the sale of residential real estate in Alaska. The instructions typically include a sellers disclosure form, details about the purchase price, purchase date, covenants and restrictions, how the sale will be financed, and the steps that must be taken to complete the transaction. These documents are generally deposited in a third-party escrow account, which serves as the intermediary between the buyer and seller. The escrow instructions provide a timeline to ensure that all of the agreed upon conditions are met, such as payment of the purchase price, inspection of the property, and transfer of title. This creates a legally binding contract between the buyer and seller to ensure that the transfer of the property goes as smoothly as possible. The escrow instructions allow for protection of both parties in the event of an unexpected and unplanned circumstance that could jeopardize the sale of the property.

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