What are escrow instructions?

Escrow instructions are a set of directions that are established during the closing of a real estate purchase or loan transaction in the state of North Carolina. Escrow instructions outline how the real estate transaction will be handled, including the responsibilities of the parties involved. The escrow instructions are typically created at the same time as the real estate purchase agreement. The instructions must be in-line with the agreed-upon terms. The escrow instructions serve as a map to the closing process, where the title or deed of the property is transferred to the buyer. In the escrow instructions, the buyer will list the amount of funds which must be collected, as well as the party that will hold the funds until closing. Escrow instructions also include instructions for the lender or buyer to provide their loan documents to the closing agent, a description of who will pay for title insurance as well as transfer taxes, and any other documents that need to be exchanged between the buyer and seller. The closing agent, title company, and attorney will review the escrow instructions to ensure that all parties have followed the same process and that the closing can proceed according to the instructions. The buyer and seller must both agree to the escrow instructions before signing and closing the transaction. Once the escrow instructions are signed, the closing process can begin.

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What are escrow instructions?

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