Bilateral escrow instructions are prepared at opening as a regional practice in which area?

• A. as is the custom for Northern California escrow transactions.
• B. as is the custom for Southern California escrow transactions.
• C. are seldom prepared.
• D. are illegal.

Answer: (B)

In Southern California, escrow setups often use bilateral escrow instructions prepared at the opening. This means both parties—typically the buyer and the seller—contribute to and sign the instructions that tell the escrow officer exactly how to handle funds, documents, and the conditions for releasing anything from escrow. Having these mutual directions in place from the start reduces back-and-forth, minimizes misunderstandings, and keeps the closing process smooth in a fast-paced market. It also ensures the escrow holder is acting on agreed-upon terms from both sides, which aligns with how closings are commonly managed there. The idea isn’t that such instructions are rare or illegal, and in Northern California the practice is not the same regional custom, which is why this option fits Southern California specifically.