What is an Escrow?
When opening an escrow, the buyer and seller establish terms and conditions for the transfer of ownership of that property. These terms and conditions are given to a neutral third party known as the escrow holder. The Escrow Officer in turn has the responsibility of seeing that these terms of the escrow are executed. The escrow is an independent third party – the vehicle by which the interest of all parties to the transaction are protected.


How does the Escrow Process work?
The Escrow Officer takes instructions based on the terms of your Purchase Agreement and the lender’s requirements. The Escrow Officer can hold inspection reports and bills for work performed as required by the Purchase Agreement. Other elements of the escrow include hazard and title insurance, and the grant deed from the seller to you. Escrow cannot be completed until these items have been satisfied and all parties have signed escrow documents.


What does the Escrow Holder do?
The escrow holder is a neutral third party, that maintains the escrow and impartially oversees the escrow process, ensuring that all conditions of the sale are properly met.

The escrow holder’s duties include:
Serve as the neutral agent and the liaison between all parties involved.
Prepare the escrow instructions.
Request a preliminary Title Search to determine the status of title to the property.
Comply with the lender’s requirements as specified on its instructions to escrow.
Receive and handle purchase funds from the buyer.
Prepare or secure the deed and documents related to the escrow.
Prorate taxes, interest, insurance and rents.
Secure releases of all contingencies or other conditions imposed on the escrow.
Record the deed and any other documents.
Request the title insurance policy.
Close the escrow pursuant to instructions supplied by the seller, buyer, and lender, if any.
Disburse funds as authorized by the instructions, including charges for title insurance, recording fees, real estate commissions and loan payoffs.
Prepare final statements for all parties involved that account for the disposition of all funds held in the escrow account.

What information will I have to provide?
You may be asked to complete a Statement of Identity as part of the paperwork. Because many people have the same name, the Statement of Identity is used to identify the specific person involved in the transaction through such information as date of birth, social security number, etc. the information is strictly confidential.

How long is an Escrow?
The length of an escrow is determined by the terms of the Purchase Agreement and can range from a few days to a few months. The average length of an escrow is usually 30 days.

When do I sign Escrow instructions and where?
A several days to a week before closing, your Escrow Officer or I will contact you to make the appointment for you to sign your escrow instructions, grant deed and final papers. At this time, your Escrow Officer will also tell you the amount of money you will need to bring in.



The Life of an Escrow
It all begins with the offer and acceptance skillfully negotiated by the real estate agents representing the buyer and seller.

The relationship with an escrow is different depending upon which position you are in. Select one of the positions below to see roles they play in the escrow process.Identification – All Parties – There are several acceptable forms of identification which may be presented. One of the following forms must be presented at the signing of escrow in order for the signature to be notarized: A current Drivers License, Passport, State of California Department of Motor Vehicles ID card.

Cashiers check – Buyers – need a cashiers check or a certified check issued by a California (or your state) Financial Institution made payable to the title company in the amount given to you by your Escrow Officer. A personal check will delay the closing since the title company is required by law to have “good funds” before disbursing funds from the escrow.

Lender’s Requirements – Buyers – should check with their lender to make sure they have satisfied all your lender requirements before coming to the title company to sign papers.

Fire and hazard Insurance – Buyers – must have fire and hazard insurance in place before the lender will send money to the title company to fund the loan. Whenever you buy a home, you must have insurance.  Buyers should call the title company with the insurance agent’s name and phone number so they can make sure that the policy complies with lender requirements.


After your Appointment
After all parties have signed the necessary papers, the Escrow Officer will return the buyer’s loan documents to the lender for final review. This review usually occurs within a few days of execution of the documents. Once the review is completed, the lender will call your escrow officer so that the necessary final paperwork can be completed.

 

Escrow Closing
The escrow closing is the legal transfer to the title of the property from the seller to the buyer. Usually the Grant Deed and the Deed of Trust are recorded within one working day of the title company’s receipt of loan funds. This completed the transaction and the close of escrow. Once all the conditions of escrow have been satisfied, the Escrow Officer will inform you of the closing date and will take care of all the final details.


When does the Buyer get the deed?
The deed will be mailed directly to the Buyer by the County Recorder’s Office several weeks after the close of escrow.