THE LIFE OF AN ESCROW -
WHO DOES WHAT?
THE BUYER
Tenders a written offer to purchase (or accepts the Seller’s counter-offer) accompanied by a good faith deposit amount.
Applies for a new loan, completing all required forms and often prepaying certain fees such as credit report and appraisal costs.
Approves and signs the escrow instructions and other related instruments required to complete the transaction
Schedules property Inspection(s) with qualified property inspector
Approves the Preliminary Title Report, property disclosures and inspection report(s) called for in their purchase and sale agreement
Approves and signs new loan documents and fulfills any remaining conditions contained in the contract, lender’s instructions and/or the escrow instructions.
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
