Explanation of Escrow:
escrow is an arrangement on which a neutral third party, called
an escrow holder, compiles legal documention, invoices and funds
on behalf of the buyer and seller. The escrow agent works closely
with you, your real estate agent and lender to ensure that the
sale conditions are complied to within the time period called
for in the Residential Purchase Agreement and Joint Escrow Instructions.
After all parties have executed these documents and complied with
all agreements described in the Purchase Contract, escrow then
distributes the funds according to the buyer's and seller's instructions.
Both the buyer and the seller rely on the escrow holder to carry
out faithfully their mutual agreement instructions relating to
the transaction. Escrow holder is bound by law to notify both
parties if the instructions given are not mutually consistent
or cannot be carried out. These instructions are drawn by the
escrow officer, and signed by the buyer and seller. Since the
escrow is not as detailed as the Purchase Contract, the information
contained in the instructions is intended to direct the Escrow
Officer in and inform all other parties as to the specific steps
that are to be completed through the escrow instructions.