HOW ESCROW AND CLOSINGS WORKS
Escrows and Closings are handled differently depending on where the transaction is.
Some states use Escrows and others Lawyers or Title Companies, or a combination of tow or three of the closing methods. In Southern California we use Escrows.
SUMMARY OF ESCROW: Escrow is considered as an “Independent Non Partial Party” who handles the transaction documents and documentation. Basically, the parties involved provide their documents, information, funds, etc. to escrow, and escrow takes care of disbursing them to the parties when escrow closes. Common, not all, Activities In Escrow are as follows:
BUYER’S RESPONSIBILITY IN ESCROW –
- BUYER DEPOSIT – Buyer’s Earnest Money Funds (Deposit) are Deposited into Escrow when there is an accepted offer. Unless stated differently the offer, funds are usually deposited with a Cashiers Check or are Wired within 24 hours of Acceptance. Caution is given when wiring, because, of the fraud. Make sure you discuss this with your bank.
- ESCROW INSTRUCTIONS – The Buyer, receives, reviews, approves and signs the escrow instructions to open the escrow. The instructions do not supersede the Purchase Agreement, however, can be amended with the consent and signatures from BOTH the Buyer and Seller.
- ESCROW QUESTIONAIRE & STATEMENT OF INFORMATION – The Buyer receives, reviews and completes a questionnaire from escrow and the Title Company. The title company requests a “statement of information” be competed by the buyer, so, they can verify identity for legal and recording purposes. The title company and lender, if there is one, will review these documents and request further information if needed.
SELLER’S RESPONSIBILITY IN ESCROW –
LENDER RESPONSIBILITY IN ESCROW –
REALTOR RESPONSIBILITY IN ESCROW-