General Escrow Instructions
The instructions that govern each escrow transaction.
DRAFT — for review only. This document describes how the platform works but is not finalized, binding legal language. It must be reviewed and completed by qualified counsel (and aligned with applicable escrow / money-transmitter licensing) before any live funds are handled.
1. Purpose
These General Escrow Instructions govern each transaction conducted through escrow.realty.com between a buyer and a seller (and any broker), with Escrow Realty acting as the neutral escrow holder. By agreeing to a transaction’s terms, each party agrees to these instructions for that transaction.
2. The escrow process
- 1Agreement — buyer and seller both agree to the item(s), amount, and fee allocation. The fee is then locked.
- 2Funding — the buyer transfers the agreed amount to the escrow trust account using the unique reference provided.
- 3Verification — the escrow holder confirms cleared funds before notifying the seller to proceed.
- 4Delivery — the seller delivers the goods or service and marks it transferred.
- 5Inspection & acceptance — the buyer inspects and, if satisfied, releases the funds.
- 6Disbursement — the escrow holder pays the seller (less applicable fees and any broker commission).
3. Funding
The buyer is responsible for transferring the exact amount to the account and reference shown on the transaction. Funds must clear before delivery is requested. Use only the bank details shown on the transaction page.
4. Delivery & inspection
Once funds are held, the seller delivers per the transaction type. The buyer has the agreed inspection period to accept or to raise a problem. Acceptance authorizes release of funds and is final.
5. Disputes
Either party may open a dispute before funds are released. Funds remain frozen during a dispute. The escrow holder reviews the matter and the agreed terms and resolves it by releasing funds to the seller or refunding the buyer.
6. Fees & disbursement
The escrow fee, allocated as agreed, is deducted at disbursement. Any broker commission is paid from the seller’s proceeds. The seller receives the deal amount less their fee share and any broker commission.
7. Cancellation & amendment
Before funding, parties may cancel or amend terms by mutual agreement. After funding, changes require the agreement of both parties and the escrow holder. [Placeholder — cancellation/refund specifics to be completed by counsel.]
8. Definitions
- Buyer — the party funding the transaction.
- Seller — the party delivering the goods or service and receiving funds.
- Broker — an optional intermediary paid a commission from the seller’s proceeds.
- Escrow holder — Escrow Realty, the neutral party holding and releasing funds.