The following is a step by step guide on the life of an Escrow.
1. Opening the Escrow
Items needed to Open Escrow:
Fully executed Purchase Contract
Earnest money check
Copy of listing
New lender information
Existing loan payoff/assumption information
Cost estimate sheet
2. Processing the Escrow
Escrow deposits earnest money check
Escrow orders Preliminary Title Report from Title Department
Escrow requests payoff or assumption information, homeowner’s association information, etc.
3. Title Examination
Property is searched
Property and parties are researched by the Title Examiner
Preliminary Title Report is typed and sent to Escrow Officer, Agents, Sellers & Buyer
4. Escrow Closing Preparation
Preliminary Title Report received by Escrow Officer and is reviewed for any surprises (i.e. tax liens, judgments, unknown liens of record, discrepancies in legal description, delinquent taxes, access
Escrow advises Agents if additional information is needed to clear any surprises revealed by the Preliminary Title Report
Escrow prepares for closing
Escrow follows-up on receipt of the following if needed, per Purchase Contract:
Termite Report -Home Protection Plan
Buyer’s Hazard Insurance -New Loan Package
Payoff Information -Assumption Information
Repair Bills -Warranties
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Time for closing– loan documents are received and Escrow Officer ‘works’ the file to reflect closing and advises agents of funds (if any) that are needed for closing
Closing appointment times are set for Seller and Buyer with Escrow Officer
Advise all parties executing documents to bring a valid government issued picture (i.e. license, passport, etc).
Advise Buyer to bring in a cashier’s check or wired funds for closing
Advise seller that pursuant to the Purchase Contract, they shall supply escrow with their Social Security number.
5. Execution of Documents
Buyer & Seller meet with Escrow Officer and execute all documents
6. Lenders Funds
After all parties have executed the necessary documents, escrow returns loan package to new lender for review and funding
Lender funds the loan and lenders check or wired funds are sent to escrow for processing
After escrow receives all funds needed and have ascertained that all funds are ‘Collected”, original documents are sent to the Recorder’s office for recordation
Once documents are recorded, escrow notifies Agents
8. Disbursement of Funds
All Disbursements are made in accordance with the Settlement Statement
9. Policies Issued
Purchaser receives Owner’s Title Insurance Policy
New Lender receives ALTA Loan Policy
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