Closing Instruction Letter
(Construction Loan) (CA)

Summary

This template is a closing instruction letter issued by both buyer and seller and provides escrow closing instructions to the escrow agent in a real property sales transaction in California. This template includes practical guidance and drafting notes. Issuance of joint closing instructions, where possible, is the preferred practice since it allows both parties an opportunity to review, discuss, and coordinate their particular escrow closing needs with one another, and to ensure that all escrow concerns are adequately addressed. Joint closing instructions are not always feasible, in which case, the closing instruction letter will be issued as the separate instruction of one or another of the parties. An individual closing letter should only include requirements of the issuing party needed to permit escrow to close. In these cases, the parties are left to protect only their own interests rather than relying on each other to ensure the completeness of the instructions. In nearly all cases, the lender will elect to prepare and submit its own escrow instructions. Section numbers in the closing instruction letter refer to the actual section number in the Commercial Purchase and Sale Agreement (Long Form) (CA). For more guidance on commercial purchases and sales, see Purchasing and Selling Commercial Real Estate Resource Kit, Junior Associate Real Estate Resource Kit (Commercial Purchase and Sale). For more information on acquisition finance, see Junior Associate Real Estate Resource Kit (Acquisition Finance), Commercial Real Estate Acquisition Loan Resource Kit, and Acquisition Finance Resource Kit.