Appendix O Form of Closing Instruction Letter

• Author: Gregory M Stein - Michael D Goodwin - Morton P Fisher Jr
• Pages: 601-605

Appendices 601

Appendix O

Form of Closing Instruction Letter

Note: When the parties are unable to conduct a table closing, the timing

and logistics of consummating a closing between widely separated parties

often preclude the negotiation and execution of a joint escrow agreement

to govern funding and the execution, delivery, and recording of closing

documents. In these situations, it is a customary practice for each party or

its counsel to issue a separate closing instruction letter to a common closing

or escrow agent, who then countersigns the letters to form separate escrow

agreements. The closing instruction letters from the buyer, the seller, and

the lender will each address a different set of issues. Obviously, the escrow

agent must be careful to confirm that the separate sets of instructions are

not contradictory and that the contemplated logistics of funding and of

execution, delivery, and recording of documents will work. The following

form is for a closing instruction letter from the buyer’s lawyer for the

purchase of property financed in part by a loan such as the one described

in Appendix G, Form of Loan Agreement.

[Letterhead of Purchaser’s counsel]

__________, 20____

By Email

__________ Title Insurance Company

Attn:

Email:

Re: [Brief description of Property]

Dear __________:

__________ is counsel to __________ (“Purchaser”). We are providing

this letter to you in connection with the acquisition by Purchaser of the

real estate (“Property”) described in Schedule A to the Commitment for

Title Insurance issued by __________ Title Insurance Company (“Escrow

Agent”) (Commitment No. __________) (“Title Commitment”), a copy of

which is attached as Exhibit A.

You have been designated as settlement agent for purposes of closing

the acquisition of the Property by the Purchaser. This letter sets forth

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