Real Estate Information |
|
Escrow From a California Homeowners Perspective
The Escrow Process Both Buyer and Seller deserve the assurance that no funds or property will change hands until all of the instructions in the Purchase Contract have been satisfied. The Realtor submits Buyers and Sellers signed documents and Buyer's deposit money to be held by an independent neutral third party (Escrow). After the conditions agreed upon by both Buyer and Seller (in the Purchase Contract) are satisfied, Escrow then distributes the documents and the funds. The escrow holder is an independent neutral third party; works for both the Buyer and the Seller, and is authorized to follow the specific written instructions provided by both parties. Escrow functions: Receives and deposits (into escrow's account) Buyer's initial deposit and prepares escrow package. Requests "demands" (pay-off statements) from existing lenders and/or lien holders. Obtains Seller's notarized signature on grant deed. Safeguards grant deed until all terms and conditions are met and Buyer's remaining certified funds are on deposit. Orders title search and receives and distributes preliminary title report. Calculates prorations pertaining to property taxes, rents, insurance, interest, and other expenses as required. Coordinates with Buyer's lender throughout the escrow process. Orders and processes Buyer's loan documents. Coordinates Buyer's signing of loan documents and their return to Buyer's lender. Receives Buyer's final down payment funds and coordinates funding with Buyer's lender. Orders recordation of grant deed conveying title to Buyer and distributes all funds: pays-off existing loans; pays other required costs, such as termite completion, home protection policy; etc. Releases net proceeds to Seller. Simultaneously, the Buyer and the Buyer's lender are engaged with the loan approval process. Lender duties: Orders a credit report and other credit documentation as required (mortgage ratings, landlord ratings). Reviews the Buyer's credit and when necessary obtains satisfactory explanations from the Buyer regarding any negative credit history. Verifies the Buyer's sources of income. Verifies that the Buyer has adequate liquid funds for down payment, closing costs, and reserves. Requests an appraisal of the property, and verifies that the property's value is equal to the contract sales price. Submits the loan to for final approval. Coordinates delivery of the Buyer's loan documents to the escrow officer.And in the meantime... While the escrow officer, lender, and Buyer are diligently working, the Seller and the Listing Agent also have responsibilities: Numerous disclosures required by law need to be made by the Seller and the Listing Agent and provided to the buyer. Provide escrow officer information on existing loans to check against title search findings. Make the home available for physical inspection and other trades people as required by the purchase contract, such as licensed Termite Company and lender's appraiser. Make any repairs agreed upon in purchase contract, or as required by local ordinance (water heater strapping, smoke detectors, etc.). In order for your escrow to proceed smoothly, your Realtor's job is to coordinate and oversee the above chain of events. Similar to dominos - each event must occur in a timely fashion. You need an experienced Realtor because delays in any of these events may result in the postponement of escrow's scheduled closing date. The Escrow Process Both Buyer and Seller deserve the assurance that no funds or property will change hands until all of the instructions in the Purchase Contract have been satisfied. The Realtor submits Buyers and Sellers signed documents and Buyer's deposit money to be held by an independent neutral third party (Escrow). After the conditions agreed upon by both Buyer and Seller (in the Purchase Contract) are satisfied, Escrow then distributes the documents and the funds. The escrow holder is an independent neutral third party; works for both the Buyer and the Seller, and is authorized to follow the specific written instructions provided by both parties. Escrow functions: Receives and deposits (into escrow's account) Buyer's initial deposit and prepares escrow package. Requests "demands" (pay-off statements) from existing lenders and/or lien holders. Obtains Seller's notarized signature on grant deed. Safeguards grant deed until all terms and conditions are met and Buyer's remaining certified funds are on deposit. Orders title search and receives and distributes preliminary title report. Calculates prorations pertaining to property taxes, rents, insurance, interest, and other expenses as required. Coordinates with Buyer's lender throughout the escrow process. Orders and processes Buyer's loan documents. Coordinates Buyer's signing of loan documents and their return to Buyer's lender. Receives Buyer's final down payment funds and coordinates funding with Buyer's lender. Orders recordation of grant deed conveying title to Buyer and distributes all funds: pays-off existing loans; pays other required costs, such as termite completion, home protection policy; etc. Releases net proceeds to Seller. Simultaneously, the Buyer and the Buyer's lender are engaged with the loan approval process. Lender duties: Orders a credit report and other credit documentation as required (mortgage ratings, landlord ratings). Reviews the Buyer's credit and when necessary obtains satisfactory explanations from the Buyer regarding any negative credit history. Verifies the Buyer's sources of income. Verifies that the Buyer has adequate liquid funds for down payment, closing costs, and reserves. Requests an appraisal of the property, and verifies that the property's value is equal to the contract sales price. Submits the loan to for final approval. Coordinates delivery of the Buyer's loan documents to the escrow officer.And in the meantime... While the escrow officer, lender, and Buyer are diligently working, the Seller and the Listing Agent also have responsibilities: Numerous disclosures required by law need to be made by the Seller and the Listing Agent and provided to the buyer. Provide escrow officer information on existing loans to check against title search findings. Make the home available for physical inspection and other trades people as required by the purchase contract, such as licensed Termite Company and lender's appraiser. Make any repairs agreed upon in purchase contract, or as required by local ordinance (water heater strapping, smoke detectors, etc.). In order for your escrow to proceed smoothly, your Realtor's job is to coordinate and oversee the above chain of events. Similar to dominos - each event must occur in a timely fashion. You need an experienced Realtor because delays in any of these events may result in the postponement of escrow's scheduled closing date. Phyllis Harb, a California native is a Realtor/Marketing Specialist at RE/Max Tri City in La Canada, California. RE/MAX Tri-City offers additional offices in La Crescenta, Glendale, Los Feliz and Pasadena. Harb has been assisting Los Angeles County home sellers and buyers since 1989 and additionally offers over 10 years experience in real estate lending. Harb has an award winning web site @ http://www.RealtorHarb.com & may also be contacted at 818 790-7325.
MORE RESOURCES: Los Angeles wildfires: Second California real estate agent charged with price gouging victims Fox News Trump's war on ‘wokeness’ could impact housing and real estate Real Estate News Tides shifted in Summit’s 2024 real estate market, experts say. Here’s what changed. Summit Daily Oliver Street Capital, Bain Capital Real Estate, Fraser Project Management and Dacon Mark Christianbook Project Completion Boston Real Estate Times Recent real estate transactions 1/28/25 BizTimes Milwaukee REAL ESTATE | Quaint cottage on Green Lake in Farmington, WI | By Tom Zernia - BOSS REALTY washingtoncountyinsider.com New lawsuit sweeps up 8 brokerages and MLSs Real Estate News Terra Living Partners Acquires 55-Unit The Plymouth Collection in Plymouth Boston Real Estate Times Marcus & Millichap Brokers Sale of Industrial Property in the Keene Metro Area With Expansion Potential Boston Real Estate Times Vantage Builders Completes Nursing Simulation And Skills Laboratory For Middlesex Community College In Lowell Boston Real Estate Times Metairie-based+commercial+real+estate+firm+expands+into+residential+market New Orleans CityBusiness Blue Zones Certification Boosts Real Estate Values Miami's Community Newspapers REAL ESTATE BRIEFS JAN. 25 Las Vegas Business Press Remembering Norine Shima-Fojt, editor and real estate agent who loved and fought fiercely Berkeleyside NRO: This Real Estate Fund Is Worth Considering, But Don't Ignore The Risks (NYSE:NRO) Seeking Alpha FCT Acquires Majority Interest in Fintracker to Modernize Identity Verification in the Canadian Real Estate Industry Business Wire Northeast Indiana Real Estate Guide Oct/Nov 2024 KPCnews.com Covid’s effect and impact on real estate, then and now The Mid Island Times What 2025 means for East Bay real estate East Bay Express I started having boozy brunches when I moved to Dubai. I drink less now — I'm fitter and better at my job but still have fun. Business Insider Investors Who Shunned the U.S. Office Market Are Coming Back The Wall Street Journal Global Commercial Real Estate Brand SVN® Appoints John Bunch as Industrial Product Council Co-Chair citybiz Midtown South Rezoning Begins Public Review - Real Estate - United States Mondaq News Alerts Real Estate Update: December Figures Show Uptick At End Of Sluggish Year Huntsville Business Journal Calare Properties Announces Promotions of Four, Expands Executive Team Boston Real Estate Times BPDA Approves Six New Development Projects in Boston Boston Real Estate Times Is Julia Fox Getting Into New Jersey Real Estate? Realtors Fall for Fake Billboard Hollywood Reporter Northeast Indiana Real Estate Guide Nov/Dec 2024 KPCnews.com News | Real estate investment firm expands workforce housing portfolio with Chicago acquisition CoStar Group Radio Real Estate 1/25/25 My Bellingham Now BBJ: Skanska Details First Phase of Longwood labs, Residential Project Boston Real Estate Times EquityProtect Partners With Pacific Coast Title to Offer California Wildfire Victims Free Protection From Real Estate Fraud Business Wire Covid’s effect and impact on real estate, then and now Garden City News Northeast Indiana Real Estate Guide 2024-2025 KPCnews.com New year, same story for warehouse owners as industrial market tightens Crain's Chicago Business Aging Homeowners: How Does the New Generation Perceive Real Estate? Rockland County Times Northeast Indiana Real Estate Guide 2025 KPCnews.com R.W. Holmes Secures 46,815 SF in Lease Renewals in Billerica Boston Real Estate Times Island Real Estate: Hatteras Island home sales and trends for January Island Free Press Real Estate Transfers (January 20-24) Times Bulletin B.C. dad's estate missing millions from real estate, stocks, Swiss accounts: Lawsuit - Vancouver Sun Trump administration 'uniquely qualified' to solve housing problem, real estate expert says Fox Business Best Real Estate Deals of 2024: Announcing this year's honorees The Business Journals Real Estate Expert Dominique Pryor-Anderson Tapped to Lead Community Investment at TREC CandysDirt.com LA real estate agent reveals No. 1 reason why Pacific Palisades residents won’t return Fox Business Check out NYREJ's Semi-Annual Commercial Real Estate Guide! New York Real Estate Journal Online Gibson, Dunn & Crutcher’s Krystyna Blakeslee: Insights on 2025 Commercial Real Estate Financing Commercial Observer Local expert calls out real estate website’s false claim that 71% of ABQ home sales in October were ‘all cash’ Albuquerque Journal Top real estate CEO says California is now battling a ‘triple threat’ no one has seen before Fortune South Bay office building flops into default as market woes widen The Mercury News Another Real Estate Agent Charged with Price Gouging MyNewsLA.com Allie Beth Allman’s URBAN Team Welcomes Commercial Real Estate Powerhouse Grant Gold CandysDirt.com Attorney General Bonta Files Charges Against a Southern California Real Estate Agent for Price Gouging Eaton Fire Victims California Department of Justice |
RELATED ARTICLES
Young Couple Buys Ranch with Government Money Kirk and Tina Sczepanik had a dream. They wanted a ranch of their own. Property Investing Secrets 1 When property investing, pay the seller their asking price but negotiate the terms under which you can buy property. You'd be absolutely surprised when property investing at how many sellers will help fund you into their property. Understanding Title Insurance Title to a property is a record detailing the owners of the property and rights associated with the ownership. Title typically shows a progression of ownership from the first owner to the current one. Oh No! Something has Happened in Florida The Florida housing market has attracted many foreigners to invest their hard earned money in the sunshine state. The British have for a long time favoured Florida for buying a second home. Buying Foreclosures - Knowing Why Helps You Buy One big potential deal-killer in buying foreclosures is the homeowner. If the homeowner does not trust you, buying their home (even at a foreclosure auction) can become a greater challenge. Thinking About Selling Your Home? Owning a home is the original American dream. It's the old frontier spirit, wanting to claim your own tuft of the New World. Escalation Clauses - A Home Buyers Secret Weapon Today we discuss escalation clauses because much of the country is experiencing an extreme "sellers' market." By that, I mean there are more buyers than there are sellers, and that results in sellers' getting more than one offer to buy their property. An Estate Planning Primer An estate plan can be designed by clients and their professional advisors to achieve the client's personal and financial objectives. Or, it can be an arrangement imposed upon survivors by state intestate succession laws if someone dies with¬out a valid, up-to-date will. Protective Covenants - Buying A Home In addition to zoning, some properties have covenants recorded at the courthouse that "run with the land." These "protective covenants" can put a serious pinch in your plans for a piece of property. The Perils of the Property Ladder: Has Anyone Noticed the Silence? There was a time when every conversation was focussed on property and every other TV programme was about property makeovers. Everybody wanted to get into property and those already on the ladder seemed fixated on becoming wealthy overnight. How to Build Your Dream Home Building your dream home is a process that takes some individuals a lifetime. Hardly anyone knows early in life what exactly constitutes "dream home" in her eyes. What to Look for in a Home Searching for just the right home can be very exciting. You may plan ahead for the number of bedrooms and bathrooms that you want. Do You Need to Download a Landlord Inventory On-Line Today? Do you need to download a Landlord Inventory on-line now? Why is it so important to have a Landlord Inventory?Firstly, if you are a landlord, you need to be prepared. As much as we all like to think we can trust everyone, it is very important that buy to let landlords protect their investment property as thoroughly as possible. Selling Your Home - A FSBOs Guide to Keeping It Safe Sellers need to keep their safety in mind when prospecting potential buyers. The real estate industry has seen a problematic climb in assaults towards realtors, and so is the concern for those who are selling their own homes. Think You Can't Afford Your Own Home, Think Again! Do you have bad credit, no credit, filed a bankruptcy, have a ton of late pays, medical bills, or been through a divorce? Well, we have the perfect solution for you - Lease Purchasing your own home!What is Lease Purchasing?A Lease Purchase is a process that combines a basic rental lease with an agreement to purchase, or with an option to purchase the property. The Buyer (or Lease-Purchaser) pays to the seller a monthly payment that usually approximates a rental amount or a typical mortgage payment on the home. Do I Need A Real Estate Survey? Getting a survey before you close on any real estate is very important.Some people actually buy real estate without having a survey done. How to Buy a Property in Bulgaria The CostAlthough the property prices in Bulgaria are quite low compared to the other European countries, there is still a wide variety of prices depending on the property type and location (as a rule the properties in Sofia and at the Black Sea are more expensive). The first thing you will need to figure out is how much you can afford to spend and thereafter to determine the price range for your purchase. Finding the Right Real Estate Agent:: A Guide for Seniors When considering buying or selling a home, seniors have a special set of needs that may not apply to others in the real estate market. The first time home buyer has a certain set of needs. The Real Estate Cycle The real estate cycle, like the business cycle, refers to the activity of the real estate market as it reacts to the forces of supply and demand.Supply and demand. Purchasing Florida Investment Property And Various Considerations Purchasing Florida Investment PropertyConsidering researching the purchase of Florida Investment Property or properties for sale in central Florida? Do you find yourself wishing you didn't have that lawn to mow and the constant upkeep on a home? Purchasing Florida Investment Property can relieve you of all those household chores but purchasing a Florida Investment Property requires you do some homework. You need to know what you are looking for in a Florida Investment Property. |
home | site map |
© 2006 TIGER MEDIA |