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.
Title: Understanding Arkansas Instructions to Cancel Escrow and Disburse Escrow Funds: A Detailed Description Keywords: Arkansas instructions, cancel escrow, disburse escrow funds, title company, types Introduction: In Arkansas, when there is a need to cancel an escrow and disburse the funds held in the escrow account, specific instructions are typically provided to the title company involved in the transaction. This detailed description aims to explain Arkansas instructions used to cancel escrow and disburse the funds, outlining the necessary steps and potential types of such instructions. I. Arkansas Instructions to Title Company to Cancel Escrow and Disburse the Funds: 1. Purpose and Authority: When providing instructions, it is crucial to clearly state the purpose of cancelling the escrow and the authority under which the decision is made. This should include reference to relevant legal documents or agreements. 2. Communication: The party initiating the cancellation must formally notify the title company by providing written instructions, typically in the form of a canceled escrow letter. 3. Accurate Information: The instructions should mention the specific escrow account involved, providing details such as the escrow number, parties' names, and property address. Accurate information helps avoid any confusion or errors in disbursement. 4. Reason for Cancellation: Clearly state the reason behind the decision to cancel escrow. This may include changes in circumstances, failed contingencies, unresolved disputes, or any other valid reason as per the agreement. 5. Disbursement Instructions: Explicitly outline how the escrow funds are to be disbursed. This may include details regarding the payees, the amount or percentage each party is entitled to receive, and the method of payment (e.g., check, wire transfer). 6. Signatures: The instructions should be signed by all relevant parties involved in the escrow, ensuring their consent and acknowledgement. II. Types of Arkansas Instructions to Title Company to Cancel Escrow and Disburse Funds: 1. Buyer's Instructions: If the cancellation decision is made by the buyer, the buyer's instructions will state the reasons for cancellation, any obligations to refund earnest money, and how the remaining funds are to be divided among the involved parties. 2. Seller's Instructions: In cases where the seller initiates escrow cancellation, the instructions will focus on matters such as releasing the deposit funds and specifying the distribution of the remaining funds. 3. Mutual Agreement: If both the buyer and seller mutually agree to cancel the escrow, a joint instruction may be issued, stating their shared intention, the disbursement plan, and any necessary contractual arrangements. Conclusion: Arkansas instructions to title companies regarding the cancellation of escrow and the disbursement of funds are instrumental in managing real estate transactions. By providing accurate and detailed instructions, the parties involved can ensure a smooth and fair process. Whether it is the buyer's, seller's, or a mutual agreement to cancel, proper instructions aid in protecting the interests of all parties involved.
