Whether you’re the buyer whose offer was just accepted, or the seller who just agreed to the terms of the purchase agreement, the next step in the process is: escrow.
Simply put, escrow is a deposit kept by a third party until a specified condition has been fulfilled. The process can be complex, which is why we here at PT Escrow make it our primary charge to help you along the way to make your escrow experience go as smoothly as possible.
So, what does an escrow officer do for you? We’re glad you asked.
- First off, the escrow holder is a neutral third party and holds legal documents and funds on behalf of the buyer and seller and distributes funds according to their specific written instructions. This way all of the details in the contract are honored properly and fairly;
- Upon receipt of the purchase agreement and buyer’s initial deposit, escrow holder orders a Preliminary Title Report (Prelim) and any supporting documents;
- The escrow holder then prepares escrow instructions and required documents in accordance with the terms of the sale;
- With permission from the seller, the escrow holder orders demands on existing deeds of trust and judgments or liens, if any;
- The escrow officer reviews the Prelim, payoff statements, loan package and any other documents received in escrow; the escrow officer also reviews any conditions required by the lender and assures that hazard and title insurance requirements have been met prior to the close of escrow;
- The buyer’s loan package, estimated closing statements, and other related documents are forwarded to the buyer and seller for approval and signatures and the remainder of buyer’s funds is requested;
- The escrow officer then reviews the signed instructions, packages and forwards loan documents to lender, then requests and receives proceeds of the loan from lender;
- Once all conditions have been met, the escrow officer determines when the transaction is able to close and notifies all parties;
- The deed, deed of trust, and any other document necessary to complete the transaction gets recorded at the County Recorder’s Office with assistance from a title representative;
- The escrow officer orders title insurance policies;
- The final settlement statements are then prepared, proceeds are disbursed to the seller, paying off any existing loans and other obligations, and escrow closes;
- The escrow officer delivers any remaining funds, documents and statements to buyer, seller, agents and lender.
That’s the scientific look at what we do. But, here at PT Escrow, our philosophy is that real estate transactions are all about the relationships. We’d love to hear from you with any questions or concerns you may have and we look forward to working with you on your next purchase or sale of real estate property.
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