Question
nnnnIf there is a conflict between the signed escrow instructions and the signed deposit receipt, which of the following would be binding?
nnnnSelections
nnnnA. The escrow instructions
nnnnB. The deposit receipt
nnnnC. The broker’s oral instructions
nnnnD. The general policy of the escrow office
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Answer: A
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5 Keys Summary
nnnn• The escrow instructions are generally considered binding and take precedence over the previously signed deposit receipt (purchase contract) when a conflict arises.
nnnn• Escrow instructions typically control because they are generally signed later by the parties than the original purchase contract.
nnnn• The escrow officer is explicitly obligated to follow the latest signed copies of the escrow instructions when closing the transaction or disbursing funds.
nnnn• The escrow instructions reflect the initial contract terms plus any subsequent modifications or amendments mutually agreed upon during the escrow process.
nnnn• If future disagreements or legal disputes arise, the updated and signed escrow instructions usually take priority over any previously signed purchase contracts.
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