INSTRUCTIONS TO THE SETTLEMENT AGENT

Instructions are written documents, signed by the parties giving them, which direct Tennessee Title in the specific particulars of the transaction. Tennessee Title follows the instructions to ensure that the proper steps are satisfactorily completed so the property can be conveyed in compliance with all parties' expectations.

Typical instructions include:

The method by which Tennessee Title is to receive and hold the purchase proceeds to be paid by the buyer;
The conditions under which a lapse of time or breach of purchase contract provision will terminate the escrow without a closing;
The instruction and authorization to Tennessee Title to disburse funds for recording fees, title insurance policy, real estate commissions, and any other closing costs incurred in relation to the closing;
Instructions as to the proration of taxes, rents or association dues, as applicable; and
Instructions for payment of prior liens and charges against the property and distribution of the net sale proceeds.

Since Tennessee Title can only follow the instructions as stated, and may not exceed them, it is extremely important that the instructions be stated clearly and be complete in all details.