Are written escrow instructions considered a confirmation of an oral PSA?

Written escrow instructions are not considered a confirmation of an oral Purchase and Sale Agreement (PSA). While oral agreements can be binding under certain circumstances, the specificity and requirements of real estate transactions, particularly those involving escrows, often necessitate written documentation to provide clarity and fulfill legal standards.

Written escrow instructions serve as a formalized set of directives given to the escrow agent on how to manage and distribute the funds or documents involved in the transaction. However, these instructions alone do not validate or confirm the existence of an oral PSA, which lacks the formalities and protections that a written agreement provides. In real estate, it's vital to have documentation that captures the full terms and conditions agreed upon by the parties.

The importance of written agreements stems from the need to avoid disputes and misinterpretations, which can arise from oral contracts. Thus, without a written PSA that captures the parties' agreement, the written escrow instructions do not serve to confirm any oral terms that may have been discussed. This understanding emphasizes the necessity of formal documentation in real estate transactions to ensure all parties are on the same page and protected under the law.