What is escrow?
When you buy a
house, there are a large number of things that need to be done between when you make an
offer and when you receive the keys.
The time when all these things are
done is called escrow. During this period a professional escrow company will ensure that
all necessary title checks, transfers, and funding are completed and that the transfer of
the property into your name can be finalized.
Kent
sez: “Leave escrow in the hands of your professional real estate agent. He will make
sure that everything goes smoothly and keep you advised of progress.”
There are a number
of things that the escrow company will do and we will try to detail them for you as simply
as we can.
It all starts when
you make an offer to buy a house, and the seller accepts that offer.
You will sign a
purchase contract and this will be forwarded to escrow.
They prepare all
the documents, including contingency releases and a status sheet checklist of items
needed.
Escrow will send a
letter to you with a copy of the seller’s acceptance of the contract and the escrow
instructions. Any counter offers or other addendums will be included in this package
together with a time line outline.
Escrow then splits
into two main sections:
a) Review and
substantiate clear title.
b) Request and
process loan documents.
These two facets
of their task continue at the same time until both have been completed satisfactorily.
The escrow officer
then reviews the file to ensure all conditions of the contract have been met and that all
documents are correct and available for signature. (This includes documents such as
results of termite inspection, contingencies released, fire insurance coverage, etc).
When all is in
order, escrow computes all the respective costs and requests signatures on all the
remaining documents. They prepare estimated closing statements and final closing
instructions for signature by buyer and seller.
When everything is
in order, they request the down payment from the buyer, forward the loan documents to the
lender, and the title documents to the title company.
They then request
the loan funds from the lender, and when the funds are received order the recording of the
transaction.
Once the
transaction has been recorded, they prepare final statements and disburse the funds.
Escrow is then
complete and they forward all final documents to all interested parties… buyer,
seller and lender.
No property transaction will ever be
finalized without a period in escrow. Depending on the purchase contract, and the lenders
requirements, it is possible for escrow to complete in about 14 days… however a more
reasonable expectation is 30-60 days.
We hope this
information has been helpful to you. Have you looked at “Why use a realtor when
looking for a home?” It may help you understand more of the issues that
need to be considered. If you are ready to
start looking to buy a home, why not check out “Petersens Picks” which is a
selection of Kent’s more interesting properties currently for sale in the Antelope
Valley. If you would like to know more about the Antelope Valley, click here. You may find that the Antelope Valley offers alot
more than you expected. We think it is a great place to live!
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