Bilateral escrow instructions at opening are a customary practice in which region?

• A. Northern California.
• B. Southern California.
• C. Both regions.
• D. Neither region.

Answer: (B)

Having bilateral escrow instructions at opening means both the buyer and the seller sign a single set of instructions that govern the escrow, giving the escrow holder authority from both sides. In Southern California, this is the customary practice because it creates mutual consent upfront, clarifies responsibilities, and speeds the process by eliminating back-and-forth over terms later. The escrow officer can proceed with tasks such as ordering title, coordinating with lenders, and arranging disbursements based on a document that reflects the agreement of both parties. This reduces the chance of conflicts about who authorized actions or what terms apply once contingencies are removed, since the terms are written and agreed to at the start. In other regions, practices can vary, but Southern California commonly uses this bilateral approach at opening.