An escrow is a neutral, independent “stakeholder” account and
is the vehicle by which the interests of all parties to the transaction
are protected. The escrow is a depository for all monies, instructions
and documents necessary for the sale purchase or refinances
of real property, including the funds for the down payment and
closing costs, the deed from the seller and the lender’s funds and
documents for the new loan the escrow officer takes instructions
based on the terms of the purchase agreement between the buyer
and seller and lender’s requirements.
The escrow holder:
• Serves as a neutral third party
and liaison among all parties
involved.
• Accepts “Earnest Money” or
initial deposit from buyers and
notifies all parties.
• Requests a preliminary report
to determine the status of the
title to the property.
• Prepares Escrow instructions
and all remaining documents
relating to the transaction.
• Request a payoff demand
from Beneficiaries when the
seller is paying off debts.
• Receives demands, termites
and certain other inspections.
• Prorates taxes and any
applicable assessments
related to the property as
required by the contract.
• Receives buyer’s loan
documents, Evidence of
Homeowners Insurance and
Closing Disclosure previously
sent to Buyer by Lender.
• Reviews file to determine
that all conditions have been
met and all outstanding documents have been executed
by all parties.
• Receives funds from buyer and
verifies any checks deposited to
Escrow account.
• Requests loan funds from buyer’s
lender.
• Records the deed and any other
documents.
• Disburses funds as authorized by
the instructions, including charges
for title insurance, recording fees,
real estate commissions are loan
payoff.
• Causes the title insurance policy to
be issued for buyer and lender, if a
lender has been used.
Escrow cannot be completed until
all parties have signed the escrow
documents and all the conditions in
escrow have been satisfied.
How is escrow opened?
As soon as the buyer and seller
execute the purchase agreement,
the real estate agent(s) will open
escrow. The buyer will deposit their
earnest money deposit into the
escrow trust account at Corinthian
Title Company
What information do the buyer
and seller have to provide?
The buyer must inform the Escrow
Officer and new lender of the
manner in which the buyer
will hold title to their new home
so that all documents can
be prepared correctly. The
manner in which the buyer holds
title can have tax and legal
consequences. We suggest
you consult your attorney or
tax adviser to assist you in your
decision.
In addition, all parties in
the escrow will be asked to
complete a statement of
information as part of the
necessary paperwork. Because
many people have the same or
similar names, the statement of
information is used to identify the
specific person in the transaction
through such information as date
of birth, social security number,
etc. This information is kept strictly
confidential.
Respectfully.
