If there is a disagreement between escrow instructions and a deposit receipt, what governs the situation?

In situations where there is a disagreement between escrow instructions and a deposit receipt, the escrow instructions typically take precedence. Escrow instructions are specifically designed to outline the terms of the escrow agreement and the responsibilities of the parties involved. They provide detailed guidance on how to manage the funds, documents, and actions required to close the transaction.

On the other hand, a deposit receipt is often a more preliminary document that may summarize the agreement regarding the sale of property but may not include the detailed instructions that govern the escrow process. Given that escrow is a fiduciary relationship where a neutral third party handles funds and documents according to the agreed-upon terms, the specific rules and directives outlined in the escrow instructions are crucial.

This hierarchy is particularly important because the instructions are created with the intent to guide the escrow holder through potential conflicts or issues that may arise during the closing process. Therefore, when discrepancies occur, the clarity and specificity of the escrow instructions provide a stronger legal framework for resolving the differences.