Concepts Definitions
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- Escrow Instructions: These are written directions given by the parties to an escrow agent, specifying the terms under which the escrow is to be conducted. They are based on the initial purchase contract but can be amended, and generally control in case of conflict with the original contract. nnnn
- Deposit Receipt / Purchase Contract: This is the initial written agreement between a buyer and seller for the purchase of real property, outlining the terms, conditions, and earnest money deposit. It serves as the foundation for the first set of escrow instructions. nnnn
- Escrow Agent/Officer: A neutral third party entrusted to hold money and documents on behalf of both the buyer and seller until all conditions of the transaction are met and the deal closes. The escrow officer must remain impartial and follow the written instructions. nnnn
- Amendment: A supplementary agreement that changes one or more terms of a contract after it has been mutually accepted and during the escrow process. Changes made after escrow is opened are considered amendments. nnnn
- Bilateral Contract: A contract by which each party is bound to a promise to perform. Escrow instructions are a type of bilateral contract between the buyer and seller. n