What is Escrow?
Escrow - based upon written instructions from the seller, buyer, real estate agents
and lender, the escrow company acts as the neutral third party that handles the
transfer of documents and money involved in the closing of real estate and personal
property.
The Escrow Process and How it Works
- Lender or Real Estate Agent requests to open escrow.
- Title Insurance is ordered or confirmed.
- Title report is reviewed for all outstanding liens, loan payoffs, assessments, judgments, probate, leased fixtures and utilities.
- All loan payoffs are ordered.
- Lender prepares closing documents and sends to escrow.
- Escrow prepares closing documents and estimated settlement statements.
- Appointments are scheduled for the buyer and seller to sign their closing documents. Buyer is also informed of the necessary funds to complete the transaction.
- After documents have been signed, escrow completes the funding package to be returned and reviewed by the lender for final approval.
- After documents have been signed, escrow completes the funding package to be returned and reviewed by the lender for final approval.
- Once the escrow company has approval from the lender, the documents are released for recording at the county recorder's office and funds are wired to the escrow company.
- Upon receipt of recording numbers, all parties are contacted, the final settlement statements are prepared and checks are disbursed to all appropriate parties.
