This form is used by a borrower or borrower’s counsel to instruct an escrow agent regarding the closing of a real estate transaction and disbursement of the documents evidencing and securing a loan secured by real estate.
Closing Instructions
[from Borrower]
[Date]
[Name of escrow officer]
[Name and address of escrow agent]
Re: $[amount] Loan (“Loan”) from
[name of lender] (“Lender”) to
[name of borrower] (“Borrower”)
Your GF Number:
[Salutation]
Set forth below are Borrower’s instructions for closing the above-referenced Loan from Lender to Borrower.
1.Enclosed with this letter or otherwise delivered to you are the following documents for your use in closing this Loan (collectively, the “Documents”):
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Select as applicable from the following examples. |
a.Promissory Note in the original principal amount of the Loan (the “Note”).
b.Deed of Trust [include as applicable: , Security Agreement, Assignment of Rents and Leases, [and] Financing Statement] (the “Deed of Trust”).
c.Financing Statement to be filed with the Texas secretary of state’s office (the “Financing Statement”).
d.Borrower’s Closing Certificate and Affidavit (the “Closing Certificate”).
e.Certificate of Resolutions (the “Resolution Certificate”).
f.Form of Opinion of Borrower’s Legal Counsel (the “Borrower’s Opinion”).
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Include title(s) of other document(s) as applicable. |
2.It is understood that you will prepare a settlement statement setting forth the proceeds of the Loan being disbursed and the purposes for which the proceeds are being applied (the “Settlement Statement”).
3.It is also understood that the Documents either have been executed and acknowledged, if required, in the manner contemplated in the Documents before their delivery to you or will be executed and acknowledged, if required, by the appropriate party before the closing of the Loan as contemplated in these instructions. Please confirm that all blanks in the Documents are completed before their execution.
4.When you have received from Lender the proceeds of the Loan to be disbursed as shown on the Settlement Statement, you are authorized to deliver to Lender the signed originals of each of the following: the Note, the Closing Certificate, the Resolution Certificate, [and] the Borrower’s Opinion [include if applicable: , and [title[s] of other document[s]]]. At that same time, please deliver to Lender two copies, certified by you to be true and correct, of each of the following signed documents: the Deed of Trust, the Financing Statement, [and] the Settlement Statement executed by Borrower [include if applicable: , and [title[s] of other document[s]]]; record the original Deed of Trust [include if applicable: and [title[s] of other document[s]]] in the real property records of [county] County, Texas; and file the Financing Statement with the Texas secretary of state’s office. At that same time, please deliver to Lender such other documents and information by then delivered to you by or on behalf of Borrower as will be required by Lender’s instructions in conjunction with closing the Loan.
5.Before releasing, recording, or filing any of the Documents, you must be prepared to disburse the proceeds of the Loan to or on behalf of Borrower in the manner shown on the Settlement Statement immediately on the recording of the Deed of Trust [include if applicable: and [title[s] of other document[s]]] in the real property records of [county] County, Texas, and the filing of the Financing Statement with the Texas secretary of state’s office, and you must have determined that all requirements of Lender for disbursement of the funds have been satisfied or waived by Lender. The disbursement of the proceeds of the Loan as shown on the Settlement Statement must be accomplished promptly on the satisfaction of such conditions, with any balance of the proceeds of the Loan that are to be disbursed to Borrower to be disbursed by wire transfer or check in accordance with Borrower’s separate instructions.
6.We have enclosed our statement for services on behalf of Borrower, which you are instructed to collect and remit to us as part of the closing.
7.By disbursing the funds, you will certify to Borrower that you have complied with the requirements and conditions of this letter and that all matters disclosed in Schedule C of the Commitment for Title Insurance (the “Commitment”) have been or will be paid, satisfied, or otherwise resolved to the complete satisfaction of the title insurer before the issuance date of the loan policy of title insurance (the “Loan Policy”) and that no exceptions for any item on Schedule C of the Commitment will be contained in the Loan Policy.
8.If for any reason you cannot or will not comply with all of the requirements and conditions of this letter, please inform the undersigned immediately. The Title Company is not authorized to close the transaction on behalf of Borrower unless the Title Company complies with the requirements and conditions of this letter.
If you have any questions regarding any aspect of this transaction, please call us at your earliest opportunity.
Very truly yours,
Legal Counsel for Borrower
By:
(Authorized signature)
Enc.
c: [name of borrower]