Frequent Asked Qusestions

Frequently Asked Questions

Q. How do I open Escrow?
A. Generally, the buyer or seller's real estate agent will open the escrow. If there is no agent involved then either party can open escrow. Escrow can be opened online or you can call in our office to open escrow. Escrow will require some necessary information and a copy of the purchase agreement to open escrow. The buyer's initial deposit is then deposited into escrow.

Q. What does Title do?
A. The title company's job is to ensure that the Buyer is purchasing a free and clear title. Title will research the property and the sellers to ensure that clear title to the property will be transferred at the close of escrow. Title will request documentation as required to support this.

Q. What's the Next Step After I've Signed my Loan Documents?
A. After both parties have signed all the necessary instructions and documents, the escrow officer will return the buyer's loan documents to the lender for final review. After the review is completed, the lender makes any final requests of documentation requirements prior to funding. Those requirements are referred to as funding conditions. Once all funding conditions are met, and the escrow is in a position to close, meaning the property can be transferred free and clear to the buyer, the loan is funded. Once it is funded the file is typically set to record the following business day.

Q. How Long is an Escrow?
A. The length is determined by the terms of the purchase agreement and can range from a few days to several months.

Q. Who Chooses the Escrow?
A. The selection of the escrow holder is normally done by agreement between the principals (Buyer and Seller or Lender and Borrower). If a real estate broker is involved in the transaction, the broker may recommend an escrow holder. However, it is the right of the principals to use an escrow holder who is competent and who is experienced in handling the type of escrow at hand. There are laws that prohibit the payment of referral fees; this affords the consumer the best possible escrow services without any compromise caused by a person receiving a referral fee.

Q. Escrow – How Does it Work?
A. The principals to the escrow – buyer, seller, lender, borrower – cause escrow instructions to be created, signed, and delivered to the escrow officer. If a broker is involved, he will normally provide the escrow officer with the information necessary for the preparation of your escrow instructions and documents. The escrow officer will process the escrow in accordance with the escrow instructions. When all conditions required in the escrow have been met, the escrow will be "closed". Each escrow, although following a similar pattern, will be different in some respects, as it deals with your property and the transaction at hand. The duties of an escrow holder include; following the instructions given by the principals and parties to the transaction in a timely manner; handling the funds and/or documents in accordance with the instruction; paying all bills as authorized; responding to authorized requests from the principals; closing the escrow only when all terms and conditions in accordance with instructions have been met, and provide an accounting for same – the Closing or Settlement Statement.