what is escrow
Escrow is a third party neutral to the transaction who handles all the Funds and Documents in a Real Estate Purchase Transaction for Buyers and Sellers.
Escrow will Collect taxes and other funds from Buyers and Sellers.
Escrow also Coordinates with TItle Companies to Insure Title.
Before the transaction closes, Escrow will ensure all requiremets are met in order to close the transaction.
Once an Offer to Purchase has Been Accepted, Escrow is opened
Buyers Deposit Earnest money in Escrow
Contigency Period Begins
Contigency Period
Time is of the Essence
Buyers has Specified time to Inspect Property Conditions
At this time Buyers have the right to do all desired inspections included but not limited to: Preliminary Title Report, Property Inspections, Pest , Roof , Plumbing , etc.
All inspection expenses are buyers expenses except the NHD that is a mandatory requirement.
Most of the time the Appraisal Report must be paid upfront by the buyers.
Comply with all Purchase Contingencies.
Provide Escrow Holder with Required documents.
Obtain a Loan approval.
Sellers Responsibilities
Escrow Company will Provide Preliminary Title Report For Title Insurance Companies Approval.
Sellers must Provide all required disclosures to buyers according to specified times in the Purchase Contract
Sellers Must provide reasonable access to buyer and buyers agents such as Roof inspectors and others for property inspections.
Provide Escrow Holder with required documents.
Sellers set up appointment with Escrow Holder to sign Final Documents.
Close of Escrow
Additional Deposits and Closing Costs Funds must be Deposited in Escrow.
When All Conditions of the Purchase Agreement has been met
Buyers Set up appointment with Escrow Company to review and sign loan documents and all closing documents.
Once all loan documents have been signed and Lender has approved Final Loan Documents.
Bank Funds and deposit the Balance of the Purchase Price in Escrow.
The Deed is Recorded in the County’s Recorders Office and the House is now the Buyers House.
Close of Escrow
Recurring Closing costs
This are expenses that will happen at the time of close of Escrow and will continue periodically monthly or yearly
Non-Recurring Closing Costs
This are expenses that will happen only one time at close of Escrow such as Title Insurance, Appraisal report etc.
