Life of an Escrow

In Southern California, it is customary to use an escrow company as the closing agent for a real estate transaction. The term escrow has come to be used interchangeably in referring to the escrow company, the escrow officer, and the escrow process. Escrow is the process in which an impartial third party acts as agent for both seller and buyer, or for both borrower and lender, in carrying out instructions, delivering papers and documents and disbursing funds. To obtain detailed authority to act as the escrow holder, the escrow officer prepares and sends to the seller and buyer escrow instructions for signature. These instructions refer to, and rely on, the Purchase Agreement for much of the instruction, but also contain language setting out the role, the duties and responsibilities of the escrow holder. When you receive your escrow instructions, there also will be County and Title (and in some cases, City) information forms for you to fill out. You'll need to return these, and your signed escrow instructions, to escrow as soon as possible. Return to Buying a Home Return to Selling a Home

Charting an Escrow

Charting the Life of An Escrow Buyer and Seller Sign Purchase Agreement and Joint Escrow Instructions (and Receipt for Deposit). Clients Open Escrow. Escrow Holder Orders Preliminary Title Report from Title Company. Prepare Escrow Instructions and Pertinent Documents. Buyer and Seller Sign and Return Escrow Instructions to Escrow. Preliminary Title Report Received and Reviewed. Order Statements of Information on Buyer and Seller and Clear Title General Index Matters. Order Demands at Client Request. Order Beneficiary Statement at Client Request. Receive Demands and Review. Notify Client. Receive Beneficiary Statement. Review Terms of Transfer and Notify Client. Bills from Termite, Natural Hazard Disclosure, Home Warranty, and Other Companies that Provided Service or Repair are Forwarded to Escrow at Direction of Client. Loan Documents Received from Lender. Buyer's Loan Documents Executed, Packaged and Returned to Lender. Client Pays Balance of Funds Needed Into Escrow. Review File to Determine All Conditions are Met and All Documents are Correct and Properly Executed, Notarized and Good Funds Received (for Buyer and Seller). Request Loan Funding from Lender. Forward Documents to Title Company and Review Title Insurance Requirements with Title Officer. Loan Funds Received and Deposited. Close File, Prepare Statements and Disburse Funds. Complete Closing. Forward Final Documents to All Parties (Buyer, Seller, Lender, Broker) Return to Buying a Home Return to Selling a Home