If only one party has signed bilateral escrow instructions, escrow

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!

Bilateral escrow instructions require mutual consent from all parties involved. If only one party signs, there is no binding agreement for the escrow holder to follow, so the escrow cannot be opened. Opening escrow means the escrow holder has a signed, accepted set of instructions to act on, including holding and eventually disbursing funds. Without both signatures, there’s no authorized direction for the escrow, so it remains not open. If the other party signs later and the instructions are accepted, the escrow can proceed.