What are escrow instructions?

Escrow instructions are written instructions that parties involved in a residential real estate transaction in Delaware must agree upon and sign. They are an important part of the process as they outline the obligations of both parties when purchasing or selling a home. Escrow instructions are usually drafted by a lawyer and outline the terms of the escrow. This includes the amount of money to be held in escrow, the method of release or delivery, the manner of payment, and the deadlines for the parties to complete their obligations. The instructions also include instructions to the escrow agent, who is the third-party neutral responsible for performing the escrow services, such as collecting and transmitting funds. The escrow instructions also outline the process of obtaining a title insurance policy for the property. The title insurance policy helps to protect both the buyer and the seller from losses due to title defects. The instructions also outline any other documents or information that must be exchanged between the buyer and the seller, such as information about the condition of the property, tax liens, or any other relevant data. By signing the escrow instructions, the parties involved in the transaction agree to comply with the terms laid out within the document and to complete all their obligations in a timely manner. In some cases, the buyer and the seller may be required to deposit funds into escrow to ensure that the terms of the agreement are met. Escrow instructions are an important part of the real estate transaction process and must be signed and followed by all parties involved.

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What are escrow instructions?

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