Question

Buyer and seller sign escrow instructions that the broker takes to the escrow agent. The escrow agent discovered discrepancies between the escrow instructions and purchase contract. Which statement is true?

A) The purchase contract prevails because it is the original document. B) The escrow instructions generally prevail because it is the most recent document. C) The purchase contract must be redrafted to agree with the escrow instructions. D) The escrow agent and the broker must resolve the conflict.

Answer 1

When there are discrepancies between the escrow instructions and the purchase contract, the purchase contract generally prevails. The escrow agent and the broker must resolve the conflict.

Step-by-step explanation:

When there are discrepancies between the escrow instructions and the purchase contract, the purchase contract generally prevails because it is the original document. The escrow instructions, although more recent, are typically created to carry out the terms of the purchase contract. However, it's important to evaluate the specific details of the escrow instructions and purchase contract to determine if any amendments or corrections are necessary.

In this situation, the escrow agent and the broker must resolve the conflict. They will need to carefully review the escrow instructions and purchase contract to identify the discrepancies and come to an agreement on how to proceed. This is crucial to ensure that the transaction adheres to the agreed terms and protects the interests of both the buyer and seller.