An escrow may be terminated according to the escrow agreement when the parties have performed the conditions of the escrow and the escrow agent has delivered the items to the parties entitled to them according to the escrow instructions. An escrow may be prematurely terminated by cancellation after default by one of the parties or by mutual consent. An escrow may also be terminated at the end of a specified period if the parties have not completed it within that time and have not extended the time for performance.
[District of Columbia] Instructions to Title Company to Cancel Escrow and Disburse the Funds held in Escrow In the District of Columbia, when parties to a real estate transaction decide to cancel escrow and release the funds held in escrow to their respective parties, specific instructions need to be provided to the title company involved. These instructions ensure a smooth cancellation process and the proper disbursement of funds to the intended recipients. Typically, the instructions to the title company will include the following: 1. Parties' Information: Begin by providing the full names, contact information, and roles (buyer, seller, agent, etc.) of all parties involved in the escrow cancellation. 2. Escrow Details: Clearly specify the original escrow number, as well as the escrow agent or title company responsible for holding the funds. 3. Reason for Cancellation: Explain the reason for canceling the escrow. This could include various circumstances such as the termination of the purchase agreement, mutually agreed-upon cancellation, or any other relevant events. 4. Authorization: Each relevant party, whether it's the buyer, seller, or both, must sign and provide their consent to cancel the escrow and release the funds accordingly. These signatures should be notarized to ensure their authenticity. 5. Agreement and Conditions: Outline any agreed-upon conditions for the release of funds. This could include the allocation of expenses or fees associated with the cancellation, provisions for returning any deposits made, or any other specific requirements agreed upon by the parties involved. 6. Disbursement Details: Clearly state how the funds held in escrow should be disbursed. Provide precise instructions on the amount and recipient of each disbursement, ensuring accuracy to avoid any delays or errors. 7. Contractor or Lien holder: If there are third parties involved, such as contractors or lien holders who have a valid claim on the funds held in escrow, instructions should be included on how their claims will be settled. This may involve paying off outstanding invoices or liens from the BS crowed funds or arranging an alternative resolution. 8. Deadline: Indicate a specific deadline by which the title company should complete the cancellation and disbursement requests. This ensures a timely resolution and prevents unnecessary delays. Types of District of Columbia Instructions to Title Company to Cancel Escrow and Disburse the Funds held in Escrow: 1. Mutual Cancellation Instructions: When both the buyer and seller agree to terminate the transaction and wish to have the funds returned to them as per the agreed-upon conditions. 2. Termination Due to Breach: If one party breaches the terms of the purchase agreement and the other party decides to cancel the transaction, instructions will detail how the funds should be disbursed in such circumstances. 3. Court-Ordered Cancellation: In rare cases, a court may order the cancellation of escrow. Specific instructions will be provided to the title company, usually from the court, outlining how the funds should be distributed. By providing comprehensive and clear instructions to the title company, parties involved in the escrow cancellation process can ensure a smooth and accurate disbursement of funds in the District of Columbia. It is important to consult with an attorney or real estate professional familiar with local regulations to ensure compliance with all requirements.
