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WHAT HAPPENS IN ESCROW?
The Escrow Officer carries out the following duties:
- Draw Escrow Instructions: Escrow draws instructions as directed by the principals as well as the real estate agents.
- Order a Preliminary Title Report: The preliminary title report is ordered from the title company for the property you are buying or selling. This report reveals liens of public record and is the guideline escrow uses to assure that title is conveyed with only the liens adn matters the buyer has agreed to accept.
- Order Payoff Statements: Order demands from the lender of record, the homeowner's association statement and documents, and any other lien information that affects title to the property.
- Complies with Escrow Instructions: Regarding termite inspection, city inspection or reports, obtaining homeowner's association documents, obtaining hazard disclosure reports, obtaining home protection policies, and generally determining that all conditions of the escrow have been or will be met prior to its closing date.
- Prepare Estimated Closing Statement: As soon as loan documents are delivered to escrow, an estimate of the closing costs is drawn and the buyer is called to arrange for an appointment to sign the loan documents and bring in closing funds.
- Order Insurance: Upon receipt of the loan documents, escrow will order the insurance policy from the buyer's insurance agent, per the requirements of the buyer's new lender.
- Set-Up Funding: When the buyer has signed all loan documents, they are then sent to the lender with a request that the loan funds be released. Your escrow has not yet closed at this point; recording of the Grant Deed is the final transfer of the property.
- Funding: When the lender verifies they are in a position to release the loan funds, the Escrow Officer calls the title company to set-up the recording. The title company will re-check public county records prior to having the documents recorded, to assure that no new liens have been recorded. If a new lien appears the recording is pulled until a clearance of the new lien is obtained.
- Recording: The title company will call to confirm all documents have been recorded and give escrow the final title and payoff of existing lender costs. Escrow will then balance the file, type closing statements, and disburse funds.
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