Escrow Process

Although every escrow transaction is unique, the following summary details the typical responsibilities of each party to the escrow transaction:

The Seller

Deposits the executed deed to the buyer with the escrow holder.
Deposits evidence of pest inspection and any required repair work.
Deposits other required documents such as tax receipts, addresses of mortgage holders, insurance policies, equipment warranties or home warranty contracts, etc.

Deposits the funds required, in addition to any borrowed funds, to pay the purchase price with the escrow holder.
Deposits funds sufficient for home and title insurance.
Arranges for any borrowed funds to be delivered to the escrow holder.
Deposits any deed of trust or mortgages necessary to secure loans.
Approves any inspection reports, title insurance commitments, etc. called for by the purchase and sale agreements.
Fulfills any other conditions specified in the escrow instructions.

Deposits proceed of the loan to the purchaser.
Directs the escrow holder on the conditions under which the loan funds may be used.

Serve as the neutral agent and the liaison between all parties involved.
Prepare the escrow instructions.
Request a Preliminary Title Search to determine the status of title to the property.
Comply with the lender’s requirements as specified on its instructions to escrow.
Receive and handle purchase funds from the buyer.
Prepare or secure the deed and documents related to the escrow.
Prorate taxes, interest, insurance and rents.
Secure releases of all contingencies or other conditions imposed on the escrow.
Record the deed and any other documents.
Request the title insurance policy.
Close the escrow pursuant to instructions supplied by the seller, buyer, and lender, if any.
Disburse funds as authorized by the instructions, including charges for title insurance, recording fees, real estate commissions and loan payoffs.
Prepare final statements for all parties involved that account for the disposition of all funds held in the escrow account.