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Residential Real Estate

Escrow Instructions

Drafting escrow instructions manually requires hours of reviewing purchase agreements, researching state-specific requirements, and ensuring all contingencies and closing conditions are properly documented. Attorneys and paralegals must cross-reference multiple sources, verify fee structures, and ensure compliance with local bar guidelines—all while managing tight closing deadlines.

Automation ROI

Time savings at a glance

Manual workflow3.5 hoursAverage time your team spends by hand
With CaseMark12 minutesDelivery time with CaseMark automation
EfficiencySave 18.8x time with CaseMark

The Problem

Drafting comprehensive escrow instructions is time-consuming and detail-intensive, requiring careful extraction of terms from purchase agreements, precise legal language, and coordination of multiple conditions and deadlines. Manual drafting takes 3-4 hours per transaction, with high risk of inconsistencies, missed provisions, or errors in party names, amounts, and cross-references that can delay closings or create liability exposure.

The CaseMark Solution

CaseMark automatically analyzes your purchase agreement and transaction documents to generate complete, legally sound escrow instructions in minutes. Our AI extracts all critical terms, ensures internal consistency, incorporates jurisdiction-specific requirements, and produces professionally formatted instructions ready for client review and execution.

Key benefits

How CaseMark automations transform your workflow

Generate complete escrow instructions in 8 minutes vs. 2.5+ hours manually

Automatically extract transaction details and party information from purchase agreements

Built-in research of state bar guidelines and industry best practices for compliance

Standardized sections covering deposits, contingencies, closing procedures, and dispute resolution

Reduce errors and omissions with AI-verified legal standards and precedents

What you'll receive

Parties Involved
Recitals and Transaction Description
Deposit Instructions
Conditions and Release of Funds
Closing Procedures
Fees and Expenses
Termination and Dispute Resolution
Signatures and Execution

Document requirements

Required

  • Purchase Agreement

Optional

  • Title Report or Preliminary Title Commitment
  • Letter of Intent or Term Sheet
  • Prior Escrow Instructions
  • Loan Commitment Letter

Perfect for

Real estate attorneys handling residential transactions
Commercial real estate lawyers managing complex closings
Solo practitioners in transactional real estate practice
Title company attorneys preparing escrow documentation
In-house counsel for real estate development firms
Transactional associates at law firms

Also useful for

This workflow is applicable across multiple practice areas and use cases

Commercial real estate transactions require escrow instructions for property acquisitions, sales, and exchanges, with more complex terms than residential deals.

The workflow's ability to extract transaction details and generate standardized escrow instructions applies directly to commercial real estate closings, which follow similar escrow processes but with higher complexity and value.

Asset Purchase80% relevant

Asset purchase agreements frequently require escrow instructions to hold portions of the purchase price for working capital adjustments, indemnification, or contingent payments.

The workflow's structure for handling deposits, release conditions, and closing procedures translates well to asset purchase escrows, which share similar mechanics with real estate transactions.

M&A transactions often use escrow arrangements to hold purchase price funds pending satisfaction of conditions, indemnification claims, or earn-out provisions.

The workflow's sections on deposit instructions, conditions for release of funds, and dispute resolution are directly applicable to M&A escrow agreements, though terminology and complexity differ from real estate.

Loan And Financing70% relevant

Real estate financing transactions require escrow instructions for construction loans, refinancing, and loan modifications where funds are held and disbursed based on specific conditions.

The workflow's ability to handle loan commitment letters and generate instructions for conditional fund releases applies to financing transactions, particularly real estate-secured lending.

Frequently asked questions

Q

What information does CaseMark need to draft escrow instructions?

A

CaseMark primarily needs your executed purchase agreement, which contains the essential transaction terms. The AI extracts party information, purchase price, deposit amounts, contingency periods, and closing timelines directly from the agreement. Optional documents like title reports, loan commitments, and term sheets help provide additional detail for legal descriptions and financing terms, but the purchase agreement alone is sufficient to generate comprehensive escrow instructions.

Q

How does CaseMark handle jurisdiction-specific escrow requirements?

A

CaseMark incorporates state-specific legal requirements for escrow instructions, including provisions for interest-bearing accounts, statutory notice requirements, recording procedures, and transfer tax obligations. The AI adapts the language and structure based on the transaction location, ensuring compliance with local real estate laws and customs while maintaining flexibility for transaction-specific terms.

Q

Can I customize the escrow instructions after CaseMark generates them?

A

Absolutely. CaseMark produces a fully editable document that serves as a comprehensive first draft. You can modify any provision, add transaction-specific terms, adjust fee allocations, or incorporate special conditions unique to your deal. The AI-generated draft provides the complete structure and standard provisions, saving you hours of initial drafting while preserving full control over the final document.

Q

How does CaseMark ensure accuracy of amounts, dates, and party names?

A

CaseMark uses advanced document analysis to extract specific data points from your purchase agreement and verify consistency throughout the escrow instructions. The AI cross-references all monetary amounts, dates, deadlines, and party identifications to ensure they match the source documents exactly. It also flags any ambiguities or conflicts found in the underlying agreements so you can resolve them before finalizing the instructions.

Q

What types of real estate transactions can CaseMark handle?

A

CaseMark drafts escrow instructions for residential purchases, commercial real estate acquisitions, vacant land transactions, income-producing properties, and business asset sales involving real property. The AI adapts to transaction complexity, including multi-party deals, seller financing arrangements, assumption of existing loans, 1031 exchanges, and transactions with extensive contingencies or special conditions.