Handling issues not covered in the escrow instructions or underlying agreement

If a dispute between the buyer and seller arises over a point not addressed in the underlying purchase agreement or escrow instructions, the agents need to mediate an agreeable solution.

The negotiated resolution then needs to be added to the escrow instructions by amendment and signed by the buyer and the seller. Signed amended instructions bind the buyer and seller to the terms agreed to in the amended instructions as part of their contractual obligations in the transaction. [U.S. Hertz, Inc. v. Niobrara Farms (1974) 41 CA3d 68]

Escrow instructions which modify the intentions stated or implied in the purchase agreement need to be written, signed and returned to escrow by both the buyer and seller.

Proposed modifications signed by some but not all parties are not binding on a party who has not agreed to the modifications. [Louisan v. Vohanan (1981) 117 CA3d 258]