Escrow Information
The title company is a disinterested
third party that collects and disburses funds in a real estate
transaction in accordance with the written agreement for the sale
between a buyer and a seller. The escrow portion of the transaction
begins when the title company receives the purchase contract signed
by the seller and buyer, and the earnest money from the buyer.
From this point forward, any monies, documents and
deeds are disbursed in accordance with the purchase contract.
The escrow officer's primary responsibility is to comply with
the written instructions that the contract provides. Any subsequent
changes to the parties' agreement must also be in writing.
Once escrow is opened, the escrow officer will prepare
necessary documents and begin the process of obtaining items necessary
for closing. These include the preliminary title report, demands
for payoffs, and requirements imposed by parties with financial
interest in the property, such as home owners associations. A
basic duty of escrow is to insure the names are correct, the right
property is being sold, and that all the terms of the original
parties' contract are followed.
Things to Remember:
- When closing is near, please call the escrow officer to
set an appointment.
- Please advise your escrow officer of the scheduled closing
date early enough to allow time for final calculations, such
as updating any loan payoff.
- The title company cannot calculate the buyer's final closing
funds without a statement of the lender's costs.
- Closing funds should be in the form of cashier's check or
direct wire into the escrow trust account. A personal check
will delay the closing until the check can be cleared.
To expedite closing, make sure
of all the following:
- The Buyer has obtained their fire insurance.
- All the contingencies have been satisfied.
- The termite inspection has been completed.
- If a new loan, the buyer has been approved.
- The home warranty has been ordered.
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