Sara McCartan
SALES - LEASING - CONSULTING
Cell: 949-280-8900     Cal BRE Lic # 01336756
LIFE OF AN ESCROW

THE LIFE OF AN ESCROW -

WHO DOES WHAT?

     

           THE BUYER

  1. Tenders a written offer to purchase (or accepts the Seller’s counter-offer) accompanied by a good faith deposit amount.

  2. Applies for a new loan, completing all required forms and often prepaying certain fees such as credit report and appraisal costs.

  3. Approves and signs the escrow instructions and other related instruments required to complete the transaction

  4. Schedules property Inspection(s) with qualified property inspector

  5. Approves the Preliminary Title Report, property disclosures and inspection report(s) called for in their purchase and sale agreement

  6. Approves and signs new loan documents and fulfills any remaining conditions  contained in the contract, lender’s instructions and/or the escrow instructions.

  7. Deposits funds necessary to close the escrow.  Approves any changes by signing amendments in the escrow instructions.

    THE SELLER

  • Accepts Buyer’s Offer to Purchase and  initial good faith deposit to open escrow

  • Submits documents and information to escrow holder, such as: addresses of lien holders, tax receipts, equipment warranties, home warranty contracts, any leases and/or rental agreements

  • Approves and signs the escrow instructions, grant deed and other related documents required to complete the transaction.

  • Orders inspections, receives clearances and approves final reports and/or repairs to the property as required by the terms of the purchase and sale agreement (Deposit Receipt

  • Fulfills any remaining conditions specified in the contract and/or escrow instructions; approves the pay-off demands and/or beneficiary’s statements

  • Approves any final changes by signing amendments to the escrow instructions or contract

    THE ESCROW OFFICER

  • Receives an order for escrow and title services

  • Orders the Preliminary Title Report and examination on the subject property from title company

  • Acts as the impartial “stakeholder” or depository, in a fiduciary capacity, for all documents and monies required to complete the transaction per written instructions of the principals

  • Prepares the escrow instructions and required documents in accordance with terms of the sale

  • With authorization from the real estate agent or principal, orders demands on existing deeds of trust and liens or judgments, if any.  For assumption or subject to the loan, orders the beneficiary’s statement or formal assumption package

  • Reviews documents received in the escrow: preliminary report, payoff or assumption statements, new loan package and other related instruments.  Reviews the conditions in the lender’s instructions including the hazard and title insurance requirements

  • Presents the documents, statements, loan package(s), estimated closing statements and other related documents to the principals(s), for approval and signature, and requests the balance of the Buyer’s funds

  • Reviews the signed instructions and documents, returns the loan package and requests the lender’s funds

  • Receives the proceeds of the loan(s) from the lender(s

  • Determines when the transaction will be in the position to close and advises the parties

  • Assisted by title personnel, records the deed, deed of trust and other documents required to complete the transaction with the County Recorder and orders the title insurance policies

  • Closes the escrow by preparing the final settlement statements, disbursing the proceeds to the Seller, paying off the existing encumbrances and other obligations.  Delivers the appropriate statements, funds and remaining documents to the principals, agents and/or lenders

    TITLE OFFICER

  • Receives an order for title services

  • Examines the public records affecting the real property and issues a preliminary report

  • Determines the requirements and documents needed to complete the transaction and advises the escrow officer and/or agents

  • Reviews and approves the signed documents, releases and the order for title insurance, prior to the closing date

  • When authorized by the escrow officer, records the signed documents with the County Recorder’s office and prepares to issues the title insurance policies

     

 


 

 













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Berkshire Hathaway Home Services - California Propertites
2 Ritz Carlton Drive Suite 101 • Monarch Beach, CA 92629
Cell: 949-280-8900 • Cal BRE Lic # 01336756



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