Escrow Instructions Template: Closing Terms and Fund Handling

Escrow Instructions Template

These Escrow Instructions are made on [Date] by and between:

Buyer / Depositor: [Full Name / Company Name]

Address: [Address]

Seller / Transferor: [Full Name / Company Name]

Address: [Address]

Escrow Holder: [Escrow Company / Title Company / Attorney / Other]

Address: [Address]

1. Transaction Information

These instructions relate to the following transaction:

☐ purchase and sale of real property

☐ refinance transaction

☐ business sale or transfer

☐ deposit holding arrangement

☐ other transaction: [Describe]

Property or transaction description:

[Insert property address, legal description, business asset description, or other identifying details]

Related agreement date, if any: [Date]

2. Opening of Escrow

The parties instruct the Escrow Holder to open and maintain escrow for the transaction described above and to hold all funds, documents, and items delivered into escrow according to these instructions and any related written agreement.

Escrow number or file reference, if applicable:

[Insert number]

3. Earnest Money or Deposit

The following deposit shall be placed into escrow:

Deposit Amount: [$Amount]

Deposit Due Date: [Date]

Method of Deposit:

☐ wire transfer

☐ cashier’s check

☐ certified check

☐ personal check

☐ other: [Describe]

Additional deposit terms, if any:

[Insert details]

4. Documents to Be Deposited

The following documents shall be delivered into escrow, if applicable:

[deed]

[bill of sale]

[loan documents]

[assignment documents]

[leases or amendments]

[title documents]

[corporate approvals]

[other transaction documents]

Additional document details:

5. Conditions for Closing

Escrow shall not close until the following conditions have been satisfied or waived in writing by the party entitled to the condition:

☐ required funds have been deposited

☐ all required documents have been signed and delivered

☐ title requirements have been satisfied

☐ loan approval or lender funding has occurred

☐ inspections or contingencies have been completed

☐ payoff amounts have been confirmed

☐ other condition: [Describe]

Additional closing conditions:

6. Closing Date

The anticipated closing date is:

[Date]

If the closing does not occur on that date, the Escrow Holder shall continue to hold the escrow items until:

☐ written joint instructions are received

☐ a new closing date is agreed in writing

☐ cancellation instructions are received

☐ other: [Describe]

7. Title, Recording, and Delivery

If applicable, the Escrow Holder is instructed to handle title, recording, and delivery as follows:

☐ record deed or transfer document after all closing conditions are satisfied

☐ obtain title policy or title commitment

☐ deliver final executed documents to the appropriate parties after closing

☐ deliver recorded documents when available

☐ other: [Describe]

Recording office or jurisdiction, if applicable:

8. Prorations and Adjustments

The Escrow Holder shall make the following prorations or adjustments, if applicable:

☐ property taxes

☐ rents

☐ association dues

☐ utilities

☐ insurance

☐ deposits or credits

☐ other adjustments: [Describe]

Proration date or method:

9. Payoff and Existing Obligations

If any liens, loans, or obligations must be paid through escrow, the Escrow Holder is instructed to:

obtain payoff statements where required;

disburse funds to the appropriate creditor or payee;

collect releases, satisfactions, or reconveyance documents when applicable;

handle any shortage or excess as follows: [Describe]

Additional payoff instructions:

10. Disbursement of Funds

Upon satisfaction of the escrow conditions, the Escrow Holder shall disburse funds as follows:

To Seller / Transferor: [$Amount or describe net proceeds]

To Buyer / Depositor, if refund or credit applies: [$Amount]

To Lender / Creditor: [$Amount]

To Broker / Agent, if applicable: [$Amount]

To Government or Recording Office: [$Amount]

Other disbursement: [Describe]

Additional wire or payment instructions, if any:

11. Fees and Costs

Escrow fees, title charges, recording fees, and other closing costs shall be paid as follows:

☐ paid by Buyer

☐ paid by Seller

☐ split equally

☐ allocated under the related agreement

☐ other: [Describe]

Additional cost terms:

12. Cancellation of Escrow

If the transaction is canceled before closing, the Escrow Holder shall handle the escrow as follows:

☐ hold funds until joint written instructions are received

☐ return funds to Buyer

☐ release funds according to the related agreement

☐ interplead funds if required or permitted by law

☐ other: [Describe]

Cancellation notice terms, if any:

13. Escrow Holder Authority and Limits

The Escrow Holder shall act only according to these instructions, any related written agreement, and applicable law.

The Escrow Holder is not responsible for interpreting legal rights between the parties beyond the written instructions provided, except as required by law.

14. Notices

Any notice relating to these Escrow Instructions shall be sent to:

Buyer Notice Address: [Address]

Seller Notice Address: [Address]

Escrow Holder Notice Address: [Address]

Notice may be delivered by:

☐ email

☐ personal delivery

☐ certified mail

☐ overnight courier

☐ other: [Describe]

15. Entire Instructions

These Escrow Instructions contain the full understanding of the parties regarding the escrow described above and replace prior discussions on that subject unless otherwise stated in writing.

If there is a related agreement, these instructions shall be read together with that agreement except to the extent the parties state otherwise here:

16. Signatures

Buyer / Depositor Signature: __________________________

Name: [Full Name]

Date: [Date]

Seller / Transferor Signature: __________________________

Name: [Full Name]

Date: [Date]

Escrow Holder Signature: __________________________

Name: [Full Name]

Title: [Title, if applicable]

Date: [Date]