HOW IS ESCROW OPENED?

After completing the contract (or Real Estate Purchase Agreement) and obtaining the Seller's acceptance of the offer, your Realtor® will initiate the escrow process. The earnest money deposit and the contract are then placed in escrow. As a neutral party, the escrow company can only act according to the mutually agreed-upon written instructions from both the Seller and Buyer, ensuring that the contract remains unaltered and protecting the interests of all parties.

HOW TO HOLD TITLE

It is important to inform your Realtor®, escrow officer, and lender promptly regarding how you wish to hold title to your home and the exact manner in which your name(s) should appear on all documents. (Changes made later, such as adding or removing an initial in your name, can result in delays during closing.) Consulting an attorney, accountant, or other professional before deciding how to hold the title may be advisable.

WHAT HAPPENS AT THE TITLE COMPANY

During the escrow period, the title department initiates research and examination of all historical records related to the property in question. Unless unusual circumstances arise, a commitment for title insurance is issued, indicating either a clear title or listing any issues that must be resolved prior to closing. This commitment is then sent to you for review.

Your escrow officer adheres to the instructions outlined in your contract, manages deadlines, and compiles all necessary documentation. For instance, written requests for payoff information (known as “demands”) are sent to the Seller’s mortgage company and any other lien holders.

CONSIDER THIS

An escrow transaction may involve over twenty individuals, including Realtors®, Buyers, Sellers, attorneys, escrow officers, escrow technicians, title officers, loan officers, loan processors, loan underwriters, home inspectors, termite inspectors, insurance agents, home warranty representatives, contractors, roofers, plumbers, and pool service providers, among others. Often, the success of one transaction is contingent on another.

Given the number of participants, it is clear that there are numerous opportunities for delays and complications. Just as an airline pilot cannot prevent turbulence during a flight, your experienced Realtor® and escrow team cannot eliminate all unforeseen issues. However, they are equipped to manage challenges and, whenever possible, guide you safely through the process to a successful closing.