THE ESCROW PROCESS
What is Escrow?
Escrow:
1. A Deed, funds property, etc.,
Deposited with a third party to be transferred to the grantee when certain conditions have been fulfilled.
2. To place Escrow – Idiom.
3. In Escrow, held by third party until certain Conditions of an agreement, bequest, etc. are fulfilled: An estate in escrow.
**Escrow Holder takes specific instructions from Seller, Buyer, and Lender.
The Escrow Holder acts as:
- Custodian for funds and documents of information received.
- Clearing house for payments of all demands.
- An agency to perform the clerical duties for the immediately Settlement of accounts between parties.
Escrow Officer’s Responsibilities:
- Prepares Documents and special instructions.
- Receives funds for escrow.
- Reviews the Preliminary Title Report.
- Orders payoffs to clear title.
- Orders Hazard Insurance for Buyer.
- Complies with lender’s instructions.
- Arranges signing of loan documents.
- Arranges new loan funds with Lender.
- Authorizes recording of documents with Title Company.
- Disburses final closing statement for Buyer and Seller.
ESCROW TIMELINE
1. Escrow Opens.
2. Escrow Instructions out within 48 hours (from date escrow provided fully executed Contract/Counters/Addendums).
3. Deposit into Escrow within 24 hours of escrow opening (if not listing agent notified).
4. Lender Information required within 2-3 days.
5. Prelim & CC&R’s (if any) from title, expected into escrow within 5-7 working days of opening escrow.
6. Prelim & CC&R’s Approval out within 24 hours of receipt.
7. Escrow Instructions expected back to escrow. within 7 working days from date sent out.
8. Demand(s) and HOA Demand(s) ordered within 24 hours.
9. Demand(s) received out to Seller for Acknowledgement.
10. HOA Document approval is given to Buyer immediately upon receipt of same.
11. File Review 10 working days prior to the close of escrow.
12. Loan/Loan Doc status called for 5 working days prior to the close of escrow.
13. When Loan Docs received Buyer/Agents called within a timely manner, normally within a couple of hours of receipt.
14. Signed Loan Docs returned to Lender. immediately by best means determined by escrow officer (closing of escrow normally occurs 72 hours from this point).
15. The funder called the day after return of docs for funding status.
16. Funding conditions (if any) meet ASAP and funded.
17. File set up to record for next available recording time (depends on time of day and county).
18. Upon confirmation Agents advised. immediately
Closing completed, balanced and checks cut within 24 hours of receipt of wire from title