Escrow

What is an Escrow?

 

An escrow is the process of having a neutral third party manage the exchange of money for the property.  The escrow holder is known as the escrow officer or settlement officer or agent.  The Buyer deposits funds and the Seller deposits a deed with the escrow officer along with all of the other documents required to remove all "contingencies" (conditions and approvals) in the purchase agreement.  The escrow officer will follow a frequently traveled path to close the escrow, using their highly honed navigation skills.  This path is fraught with typical, atypical, and sometimes unique hurdles.  Your escrow officer will look to you, your agents, and the Seller for help in overcoming the hurdles necessary to close escrow on the date you and your Seller agree upon.

How is an Escrow opened?

Once a purchase agreement is ratified, the agent representing the party who will pay for the fee selects an escrow holder and the Buyer's earnest money deposit and contract are submitted.  From this point, the escrow holder will follow the mutual written instructions of the Buyer and Seller, maintaining a neutral stance to ensure that neither party has an unfair advantage over the other.  The escrow holder also follows the instructions of the Buyer's new lender, the Seller's existing lender, and both agents.  The escrow holder ensures the transparency of the transaction, while carefully maintaining the privacy of the consumers.

What does your Escrow professional do?

• Open escrow and deposit the Buyer's good faith funds (earnest money) in a separate escrow account.
• Order a title search to determine ownership and status of the subject property.
• Issue a preliminary report and begin the process to delete or record items to provide clear title to the property.
• Per contract, confirm that the lender has determined that the Buyer is qualified for a new loan.
• Meet all deadlines as specified in the contract.
• Request payoff information for the Seller's loans, other liens, homeowner's association fees, etc.
• Prorate fees, such as property taxes, per the contract, and prepare the settlement statement.
• Set separate appointments allowing the Seller and the Buyer to sign documents and deposit funds.
• Review documents ensuring all conditions and legal requirements are fulfilled; request funds from lender.
• When all funds are deposited, they record documents with the County Recorder's Office to transfer the subject property to the Buyer.
• After the recording is confirmed, close escrow and disburse funds, including Seller's proceeds, loan payoffs, etc.
• Prepare and send final documents to all parties involved.