During a California residential escrow, the seller submits an amended escrow instruction requesting a new closing date. The buyer has not signed or agreed to the amendment. What is the escrow officer's proper course of action?
Correct Answer
B) Acknowledge receipt of the seller's amendment but decline to implement it until the buyer also executes a matching amended instruction
Under California escrow law, escrow instructions form a bilateral agreement between buyer and seller. A material term such as the closing date cannot be changed by one party alone. The escrow officer must acknowledge the seller's request but may not implement the change until the buyer executes a matching amended instruction, ensuring mutual consent.
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Three business days before a scheduled California residential closing, the buyer's lender issues a Closing Disclosure showing that the loan's APR has increased beyond the TRID tolerance threshold compared to the original Loan Estimate. What must occur before closing can proceed?