Holland Law and Title

Holland Law and Title


Contact Us

Click on a name below to email:

Place Title Order

Click here to place order.

Calculators

Click here to download our cool new app, including closing cost calculators and much more.

Or click on one of the rate calculators listed below:

Basic Title Premium Calculator
Refinance Title Premium Calculator
Investment Calculator
19 in 1 Mortgage Calculator
Seller's Estimated Closing Costs
Buyer's Estimated Closing Costs
Reverse Mortgage Calculator

About Title Insurance

Home Ownership Tips and Articles

Instructions to the Settlement Agent

Settlement Agents work from specific instructions provided by buyer and seller. Throughout the country the settlement process differs, but the role of the settlement agent is substantially similar.  In Texas, the escrow settlement agent may work from the purchase and sale agreement, loan escrow instructions, and other escrow instructions prepared at the direction of the principals to the transaction. The settlement agent follows those instructions to insure the proper steps are completed so the escrow can be closed.

Typical instructions include:

  • The method by which the settlement agent is to receive and hold the purchase price to be paid by the buyer;
  • The conditions under which a lapse of time or breach of purchase contract provision will terminate the escrow without a closing;
  • The instruction and authorization to the settlement agent to disburse funds for recording fees, title insurance policy, real estate commissions, and any other closing costs incurred through escrow;
  • Instructions as to the proration of taxes, rents or association dues, as applicable;
  • Instructions on the payment of prior liens and charges against the property and distribution of the net sale proceeds.

Since the settlement agent can only follow the instructions as stated, it is extremely important that the instructions be stated clearly and be complete in all details.