THE ESCROW PROCESS
When buying or selling property, escrow is essential to the transaction.
Escrow is the neutral third party whom collects funds and documents and distributes
them upon fulfillment of all conditions to their rightful parties.
THE OFFER
Buyer and seller sign purchase and sale agreement
Buyer places deposit in escrow
ESCROW OPENS
Buyer or seller’s broker/ agent opens escrow
Escrow orders preliminary report from the title company
Escrow prepares instructions and documents
Buyer and seller sign and return escrow instructions
Escrow forwards Statement of Identity to title officer to verify clear title
Escrow contacts lender for status and conditions
Escrow obtains loan approval
Escrow verifies terms and orders loan documents
Escrow reviews preliminary report
Escrow request demands for payoff
Escrow reviews file for all conditions
CLOSING ESCROW
Escrow receives loan documents
Buyer signs all loan documents and returns to escrow with closing funds
Escrow verifies that all documents are properly executed and notarized
Escrow verifies funds and conditions
Escrow request funds from lender
Escrow and title company review title insurance requirements
Escrow receives funds from lender
Escrow records deed
Escrow closes file
Escrow prepares documents to be distributed
Escrow disburses funds
When buying or selling property, escrow is essential to the transaction.
Escrow is the neutral third party whom collects funds and documents and distributes
them upon fulfillment of all conditions to their rightful parties.
THE OFFER
Buyer and seller sign purchase and sale agreement
Buyer places deposit in escrow
ESCROW OPENS
Buyer or seller’s broker/ agent opens escrow
Escrow orders preliminary report from the title company
Escrow prepares instructions and documents
Buyer and seller sign and return escrow instructions
Escrow forwards Statement of Identity to title officer to verify clear title
Escrow contacts lender for status and conditions
Escrow obtains loan approval
Escrow verifies terms and orders loan documents
Escrow reviews preliminary report
Escrow request demands for payoff
Escrow reviews file for all conditions
CLOSING ESCROW
Escrow receives loan documents
Buyer signs all loan documents and returns to escrow with closing funds
Escrow verifies that all documents are properly executed and notarized
Escrow verifies funds and conditions
Escrow request funds from lender
Escrow and title company review title insurance requirements
Escrow receives funds from lender
Escrow records deed
Escrow closes file
Escrow prepares documents to be distributed
Escrow disburses funds