Check Your Understanding Answers
- What are escrow instructions?
Escrow instructions are the written authorization and instructions for how an escrow agent will perform in the transaction.
- What activities are all escrow agents prohibited from doing?
Escrow agents can never offer legal advice, settle disputes between the parties, change documents related to the transaction, show any bias toward one party, or release funds without authorization from all parties.
- Besides the escrow agent, who else has responsibilities to ensure the closing occurs smoothly and on time?
Real estate agents, buyers, and sellers
- List three duties of real estate agents during the escrow process. (Additional correct answers on pages 13 and 14.)
- Communicate with their client and other agent
- Make sure that the escrow instructions prepared by the escrow agent accurately reflect all of the terms of the purchase and sale agreement
- Ensure contract deadlines, document requirements, and escrow funds are fulfilled
