Frequently Asked Questions

Escrow means that you're using a "third party"(somebody who is neither the buyer nor the seller) to hold something of value, which helps to make your transaction safer. The most common use of escrow is the sale and purchase of a home. Escrow opens when a contract or agreement, signed by all parties, is delivered to an escrow officer, who helps to ensure that the conditions of the contract or agreement are all satisfied (that inspections, disclosures, and objections are completed or resolved on time, for example). Escrow closes when everything is done and the ownership is transferred to the buyer.

Providing the following items to your escrow officer will help expedite the processing of your transaction:

Seller

1. Mortgage Bill Statement(s)
2. Current Homeowner's Association Statement (HOA Dues), if any
3. Property Tax Bill

Buyer

1. Complete names & vesting.
2. Initial Deposit
3. Lender Information(if obtaining a loan)
4. Insurance agent information.

The charges of a transaction are dependent on the type, complexity of your transaction and the terms of your mutually agreed terms of the purchase agreement.  The seller typically pays for the costs involved in assuring the Buyer a clear title on the property. The Buyer typically pays for the costs involved in the financing. The escrow fees are usually paid one half each. There may be additional costs that are specific to your transaction.

The escrow officer handles each transaction specific to its needs, please find some of the more common services provided below:

1. Receive and hold Buyer's funds in a trust account during escrow.
2. Read and comply with all agreements as detailed in the Purchase Contact and Joint Escrow Instructions as it pertains to the escrow process.
3. Follow mutually signed, written instructions agreed upon by Buyer and Seller during escrow.
4. Prepare Escrow Instructions/General Provisions, Amendments, Grant Deed (for seller's signature), Estimated Closing Statement and any additional documents required to clear title or as required by the new lender.
5. Receive loan documents from the Buyer's new lender (IF APPLICABLE) and prepare amendments and estimated closing statements as specified in the lender's instructions.
6. Order the evidence of insurance from the Buyer's insurance agent as per the requirement of the new lender.
7. Send the signed loan documents and all lender required items to the new lender for funding.
8. Oreder Homeowner's Association (HOA) documents for Buyer's review and any other necessary documents required for the specific transaction.
9. Make sure that escrow is in receipt of all funds necessary to pay the seller their prceeds as well as all invoice agreed upon by buyer and seller during escrow.
10. Make sure the Seller has sufficient equity in the property to cover all costs, payoff of liens and any invoices agreed upon by Buyer and Seller during the escrow.
11. Make sure that all the conditions agreed upon by the Buyer and Seller in the purchase agreement and in writing through escrow have been satisfied prior to closing the escrow and transferring the property in to the Buyer's name.

*The Buyer and Seller should also be aware that they may receive additional items that require their signatures from their agents and/or lenders directly.

The primary consultant should be your Real Estate Agent/Broker, if the negotiations have been conducted through them. The escrow officer may direct you to contact your agent/broker, legal counsel or tax advisor depending on the nature of your inquiry.

A cancellation agreement must be reached between the Seller and Buyer with written instructions signed by both parties for the disbursement of any funds held in escrow. Payment of any fees and costs incurred should also be taken into consideration. If the parties cannot agree, a court order may be needed.