At some point during the escrow, the transaction will become ready for closing. Once the closing papers are signed by the seller and buyer (i.e., the borrower), subsequent instructions by either party to cancel the closing might subject that party to legal action and damages.

When the buyer and the seller agree to change the terms of the transaction after escrow has received instructions, additional instructions signed by all the parties need to be delivered to the escrow provider. Additional instructions to escrow must be signed by all parties in order to be valid.

Escrow can be closed by an individual representing the buyer or seller using a properly executed power of attorney. Closing escrow with a power of attorney is commonplace.

Typically, the documents the seller is required to execute in a residential transaction are:

• Escrow Instructions

• Warranty Deed

• Closing Statement

• IRS Form W-9

• Affidavit of Identity

• Bill of Sale regarding personal property

Typically, the documents the buyer is required to execute in a residential transaction are:

• Escrow Instructions

• Closing Statement

• Note

• Deed of Trust or mortgage

• Affidavit of Identity

• IRS Form W-9

• RESPA Service Disclosure Statement

• IRS Form 4506

• Regulation Z (Truth in Lending Disclosure Statement)

• Any additional documents required by the lender