Escrow & Title

What is 'escrow instructions' in an Illinois real estate transaction?

AInstructions given by the buyer's lender about the mortgage escrow account
BWritten directions to the title company or escrow agent specifying conditions that must be met before funds are disbursed and documents recorded✓ Correct
CInstructions from IDFPR on how to handle earnest money disputes
DThe managing broker's instructions to the closing agent about commission payment

Explanation

Escrow instructions are written directions given to the escrow agent (title company) by the parties, specifying exactly what must happen before the agent will disburse funds and record documents. They specify: documents to be executed, conditions to be met (loan approval, title clearance, inspection), funds to be collected and disbursed, and when and how recording should occur. In Illinois, escrow instructions coordinate all aspects of the closing process.

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