| Identify & detail the following:
• Seller, buyer, legal description and street address are identified.
• Seller and buyer agree to engage the escrow agent (or title company, if that is the case) to close the transaction.
• Authorize the escrow agent to obtain all necessary documents (excluding legal documents such as deeds), record the transaction, and carry out all terms of the Purchase and Sale Agreement.
• Both parties acknowledge that all contingencies listed in the purchase agreement have been satisfied or otherwise negotiated outside of the closing.
• Acknowledge having read and approved the preliminary commitment for title insurance and approve of the proposed vesting and exceptions.
• Acknowledge the escrow company and/or agent are not responsible for transfer of either mineral or water rights in the property.
• Authorize the agent to receive and disburse funds.
• Inaccuracies or deficiencies in loan calculations and/or loan payoff balances have been
reviewed by the parties, and responsibility for same is assumed by the party legally responsible.
(For example, if an incorrect payoff on a mortgage loan is received by the escrow agent, the
seller would be obligated to deposit additional money - or have the proceeds reduced in a
sufficient amount - to pay the balance in full.)
• Define "close of escrow" as the date on which instruments are filed for record. Note: once the
escrow has been closed and instruments recorded, the closing documents take precedence over
the Purchase and Sale Agreement; i.e., the Purchase Agreement "dies."
• Authorize escrow agent to provide copies to interested parties to the transaction.
• Authorize escrow agent to halt the closing in the event conflicting demands or claims arise.
Give both parties the right to commence or defend an action or proceeding for the determination
of such conflicts. This includes disputed claims relating to real estate commissions and/or
brokerage fees.
• Inform each party of the right to cancel the transaction in writing and for the escrow agent to
return monies deposited for the closing to the appropriate party.
• Agreement of both parties to pay costs, damages, judgments, and expenses, including attorney's
fees, for any action arising out of the escrow. This includes the right of the escrow agent to file a
suit in interpleader (see definitions section in this chapter) and deposit all pertinent documents
with the courts for decision.
• Acknowledge there may be tax consequences involved in the transfer of real estate and hold
harmless the escrow agent from any such instances. Advise the seeking of appropriate tax
advice from accountants or attorneys.
• Acknowledge the escrow agent is not authorized to practice law and that no legal advice has
been dispensed by the escrow agent. Allow both parties to obtain their own legal advice.
• Acknowledgment by both parties they have been allowed sufficient time to read the instructions
and other documents involved in the escrow and, further, that those documents are understood.
• Agree to the pro-ration of property taxes and, should a disagreement arise (usually due to
changing assessments), it will be handled by the parties and outside of escrow.
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