If a CAR Purchase Agreement is used, the typical instruction at opening is which?

Study for the California Escrow Exam. Dive into detailed content with flashcards and multiple choice questions, accompanied by explanations and hints. Ensure your success on test day!

Opening escrow relies on standard escrow instructions, with any deal-specific terms added through a supplemental instruction. When a CAR Purchase Agreement is used, the contract details—price, contingencies, dates, credits, concessions, and other terms that affect the escrow—are captured in a supplemental instruction so the escrow holder knows exactly how to handle those terms. The CAR form itself is the contract, not the escrow instructions, so it doesn’t serve as the instruction to the escrow officer. That’s why the typical practice is to prepare only a supplemental instruction to reflect the purchase agreement terms. If terms aren’t covered by the standard instructions, a full new instruction would be unnecessary, and leaving no instruction wouldn’t be appropriate since the terms need to be communicated to escrow.