What document would an escrow agent likely reference for instructions regarding settlement charges in a real estate transaction?

In a real estate transaction, the escrow agent typically refers to the purchase agreement for instructions regarding settlement charges. The purchase agreement outlines the terms and conditions of the sale, including agreed-upon prices, payment arrangements, and any specific terms related to how expenses and fees should be handled during the closing process.

This document is critical as it serves as the roadmap for the transaction, detailing not just the property being sold, but also specifying who is responsible for particular costs, such as closing costs, title insurance, and other settlement charges. By referencing the purchase agreement, the escrow agent ensures that all parties adhere to the agreed-upon terms and that the settlement process proceeds smoothly.

While the other documents, such as the title report, loan agreement, and settlement statement, contain important information regarding the transaction and its components, they do not specifically outline the initial terms set by the buyer and seller in the same way the purchase agreement does. This makes the purchase agreement the primary reference for settlement charge instructions.