What Is Escrow?
An escrow company is a neutral third party that is selected by a real estate agent, buyer, or seller once an offer is accepted on a property. The escrow holder is like the cook in the kitchen who gathers all of the ingredients together. We safeguard all the funds in the transaction and ensure all of the necessary conditions are fulfilled—including the delivery and signing of documents, the payment of invoices, and the satisfaction of contractual contingencies—before closing the deal and disbursing the money.
These days, there is a lot of paperwork involved in the transfer of a property. Escrow Exchange West is committed to being available to buyers and sellers to make sure they thoroughly understand the process and the complexities of the transaction. Our goal is to make the experience as stress-free and transparent as possible.
Our team is trained to close your transaction efficiently, without wasted time or expense.
The Process
The Beginning
The process begins when the escrow company receives the fully executed purchase agreement. The escrow officer sends an introduction to the buyer(s) and provides wire instructions for the earnest money deposit, and an introduction to the seller(s) in order to begin ordering mandatory reports. The escrow officer then prepares escrow instructions and, after they are reviewed and approved by the agents, sends them for signature to buyer and seller along with their respective opening packages, which contain various information and tax forms. The buyer’s opening package will include a vesting instruction form, in which the buyer indicates how they intend to hold title to the property being purchased. The escrow officer also opens an order with the title company designated on the purchase agreement.
The Middle
As the escrow progresses, the escrow officer receives and then forwards on to the parties various reports, such as the natural hazard disclosure report, the report of residential property records (if applicable), a preliminary title report, homeowner association documents (if applicable), a home warranty plan (if applicable), retrofitting documents, etc. During this time, the seller should make arrangements to sign the grant deed in front of a notary public—either at escrow or with a mobile notary, which can be arranged with the escrow company. Using information provided by the seller, the escrow officer orders payoff demands in order to pay off the seller’s loans at the close of escrow.
As these reports and invoices come in, the escrow officer works with the buyer's mortgage broker and/or lender and makes sure they have all they need to process the buyer’s loan documents. When the lender sends the loan documents to the escrow holder, the escrow team arranges for the buyer and a mobile notary to meet. Once the loan documents are signed, the escrow officer processes and returns them to the lender for review and provides the lender with whatever is needed to fund the loan (wire the money to the title company).
The End
Once the escrow holder is in receipt of the buyer’s final deposit, all necessary paperwork has been signed, and all conditions of the escrow have been satisfied, the escrow is set up to record (close) for the next business day. Upon confirmation of recording from the title company, the file is balanced and all funds are disbursed accordingly.
We are happy to answer any questions our clients might have about this process.
Please call us at 310-786-8686 during regular business hours.