Escrow From A California Homeowner's perspective
Buyer and Seller deserve the assurance that no funds or property
will change hands until all of the instructions in the Purchase
Contract have been satisfied. The Realtor submits Buyers and Sellers
signed documents and Buyer’s deposit money to be held by
an independent neutral third party (Escrow). After the conditions
agreed upon by both Buyer and Seller (in the Purchase Contract)
are satisfied, Escrow then distributes the documents and the funds.
escrow holder is an independent neutral third party; works for
both the Buyer and the Seller, and is authorized to follow the
specific written instructions provided by both parties. Escrow
and deposits (into escrow’s account) Buyer's initial deposit
and prepares escrow package. Requests "demands" (pay-off
statements) from existing lenders and/or lien holders. Obtains
Seller's notarized signature on grant deed. Safeguards grant deed
until all terms and conditions are met and Buyer’s remaining
certified funds are on deposit. Orders title search and receives
and distributes preliminary title report. Calculates prorations
pertaining to property taxes, rents, insurance, interest, and
other expenses as required.
with Buyer's lender throughout the escrow process. Orders and
processes Buyer's loan documents. Coordinates Buyer’s signing
of loan documents and their return to Buyer’s lender. Receives
Buyer's final down payment funds and coordinates funding with
recordation of grant deed conveying title to Buyer and distributes
all funds: pays-off existing loans; pays other required costs,
such as termite completion, home protection policy; etc. Releases
net proceeds to Seller.
the Buyer and the Buyer's lender are engaged with the loan approval
process. Lender duties:
a credit report and other credit documentation as required (mortgage
ratings, landlord ratings). Reviews the Buyer's credit and when
necessary obtains satisfactory explanations from the Buyer regarding
any negative credit history. Verifies the Buyer's sources of income.
Verifies that the Buyer has adequate liquid funds for down payment,
closing costs, and reserves. Requests an appraisal of the property,
and verifies that the property's value is equal to the contract
the loan to for final approval.
delivery of the Buyer's loan documents to the escrow officer.
And in the meantime... While the escrow officer, lender, and Buyer
are diligently working, the Seller and the Listing Agent also
disclosures required by law need to be made by the Seller and
the Listing Agent and provided to the buyer.
escrow officer information on existing loans to check against
title search findings.
the home available for physical inspection and other trades people
as required by the purchase contract, such as licensed Termite
Company and lender's appraiser.
any repairs agreed upon in purchase contract, or as required by
local ordinance (water heater strapping, smoke detectors, etc.).
order for your escrow to proceed smoothly, your Realtor’s
job is to coordinate and oversee the above chain of events. Similar
to dominos – each event must occur in a timely fashion.
You need an experienced Realtor because delays in any of these
events may result in the postponement of escrow’s scheduled
Harb, a California native is a Realtor/Marketing Specialist at
RE/Max Tri City in La Canada, California. RE/MAX Tri-City offers
additional offices in La Crescenta, Glendale, Los Feliz and Pasadena.
Harb has been assisting Los Angeles County home sellers and buyers
since 1989 and additionally offers over 10 years experience in
real estate lending. Harb has an award winning web site @ http://www.RealtorHarb.com
& may also be contacted at 818 790-7325.