Escrow and the Close of Escrow

ESCROW AND THE CLOSE OF ESCROW

Once your offer has been accepted, both the buyer and the seller are now in contract and escrow is opened.

WHAT IS ESCROW?

Escrow is the process by which the interests of all parties in a real estate transaction are protected, ensuring that all conditions of the sale have been met, before the property and money change minds. Escrow is an independent depository wherein all funds, instructions and documents for the purchase of your home are held, including your down payment, your lender's funds, documents for the new loan, hazard and title insurance, inspection reports and the grant deed from the seller. At the close of escrow, the escrow officer delivers these items to the appropriate parties, dispursese the funds and handles the associated paperwork.

WHAT ARE BUYER'S DUTIES?

Throughout escrow, it is the buyer's duties to remove all contingences stated in the offer if up to buyer's standards. For example, this would mean securing a loan and having an appraisal or completing all pest and contractor's inspections. Mary will see to it that all inspections are scheduled and removed within a timely manner. Mary is always present at all meetings to help you make educated decisions.

WHAT ARE ESCROW OFFICER'S DUTIES?

  • Serves as the neutral professional and the liasion between all parties involved

  • Requests a preliminary title search to determine the status of title to the property

  • Requests a beneficiary statement of debt or obligations that will be taken over by the buyer

  • Requests a payoff demand from beneficiaries when the seller is paying off debts

  • Complies with the lender's requirements as specified in their instructions to escrow

  • Secures releases of all contingencies of other conditions imposed on the escrow 

  • Prepares or secures the deed and other documents related to escrow

  • Prorates taxes, interest, insurance and rents

  • Prepares escrow instructions

  • Receives purchase funds from the buyer and receives loan funds from the buyer's lender

  • Closes escrow pursuant to instruction supplied by the seller, buyer and the lender

  • Records the deed and any other documents

  • Disburses funds as authorized by the instruction, including charges for title insurance, recording fees, real estate commissions and loan payoffs

  • Prepares final statement for all parties involved that account for the disposition of all funds in the escrow account