Ch 12.2 Flashcards
When can escrow instructions be verbal?
When there is a written purchase agreement or some other writing that satisfies the enforceable contract requirement for a valid escrow.
T/F: Buyers and sellers often issue joint instructions (one document)
True
.. but can issue separate instructions
Who usually issues separate escrow instructions addressing disbursement of the loan funds
The lender
When must every party receive a copy of the escrow instructions
At the time of signing
If conflicting Instructions between the purchase agreement and escrow instructions are irreconcilable, which contract will the court uphold?
The more recent one
An escrow agent who receives conflicting instructions should immediately ask the parties for clarification and have the parties sign ___ that eliminate the discrepancy
amended instructions
When a lawsuit results from separate escrow instructions from each party (vs a joint set of instructions), the escrow agent will ____ the funds in question by submitting them to the court where the lawsuit is being heard
Interplead
Interplead
?
T/F: A party to a contract can unilaterally waive the condition that benefits only that party
True
T/F: If the parties agree to an amendment, they only need to amend the escrow instructions
False
They should amend the Purchase agreement and the escrow instructions
T/F: State law requires that any amendment to written escrow instructions needs the written approval of every party who signed the original instructions (which might include the buyer’s lender).
True
The buyer and seller specify the conditions that must be met for closing to occur in a contract called escrow instructions
Escrow instructions
T/F: Escrow instructions are legally binding on an escrow agent.
True
T/F: The agent must follow the instructions of only the buyer and seller
False
Buyer,
Seller, and
any other parties to the escrow
