Appendix O Form of Closing Instruction Letter

AuthorGregory M Stein - Michael D Goodwin - Morton P Fisher Jr
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
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
ste54861_11_app_517-606.indd 601 8/4/16 3:27 PM

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT