| The Escrow Officer serves as the neutral "stake
holder" and the communication link to all parties in the
transaction. The Escrow Officer holds all documents and money
until all conditions of the sale are completed, at which time
she will impartially carry out the written instructions given
by the principals in the transaction.
How is a Resale Escrow Opened?
An escrow is opened by one of the real estate agents involved
in the transaction. In some counties, it is traditional for the
"listing" agent (the real estate agent who has the property
listed for sale) to open the order. In other counties it is the
agent representing the buyer who will open the order. Your real
estate agent can give you guidance in this area.
Today, many buyers and sellers are very knowledgeable about the
process and both may have a favorite escrow officer and title
company they wish to use. However; any question about "which
title company" is always worked out before we get involved!
When an "order" (or "file") is opened, the
agent will call the selected escrow officer. An "escrow number"
is used to identify this transaction throughout the escrow (and,
once the file is closed, on into the storage system used to safeguard
these files).
When the order is opened, the real estate agent provides us all
the information about the property (address, current owner, prospective
buyer, buyer’s lender, outstanding loan information, sales price
etc.). The agent may also send or call in a set of instructions
which outlines the details of the transaction, such as commission
to the be paid to the agent and expected closing date.
The next step is to verify all of the pertinent information with
the buyers agent. The escrow officer will find out if a home warranty
will be taken on the new home, when to expect the termite report
to be completed and other details which will affect the escrow.
The escrow officer will also make sure that everyone involved
in the transaction has our phone and FAX numbers as well as the
escrow number.
How is a Resale Escrow Closed?
When an escrow file is opened, the escrow officer actually make
a list of all the items necessary to close the escrow. These may
include the buyers deposit, loan documents, fire and other insurance
policies, home warranty, termite report, terms of the sale and
any seller-assisted financing, title insurance policy and requests
for payment for various services to be paid out of escrow funds.
At that time all parties will be asked when they hope the escrow
will close. Because most people have rent or lease payments month
to month, escrows often close at the end of the month so the buyer
can move into their new home and avoid paying another month’s
rent on the previous residence.
The Escrow Officer cannot disburse any funds or information
unless she/he is instructed to do so in writing. So, when the
necessary documents and money have been received into the file,
the Escrow Officer will draw up a set of instructions (called
"escrow instructions"), which put all the information
in writing. These escrow instructions will be signed before the
end of escrow. In Southern California these escrow instructions
are drawn at the beginning of the process.
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