When you Open Escrow

When you Open Escrow.

In Southern California a neutral, third party (the escrow holder, a.k.a. escrow agent) is engaged to assure the transaction will close properly and on time.

The escrow holder insures that all terms and conditions of the seller's and buyer's agreement are met prior to the sale being finalized, including receiving funds and documents, completing required forms, and obtaining the release documents for any loans or liens that have been paid off with the transaction, assuring you clear title to your property before the purchase price is fully paid.

 An escrow company in California, is a neutral third party that processes legal documents regarding the transfer of real estate. It has an obligation to safeguard the funds and/or documents while they are in the possession of escrow, and to disburse funds and/or convey title only when all provisions of the escrow have been complied with.

What Escrow Company Should You Work With?
In your purchase contract, the escrow company is a negotiable item between the buyer and seller. Most sellers rely on their real estate professional to select an escrow company that is reliable. Although, Realtors® can't guarantee the work of any company they recommend, they know who the good companies are.

Who Handles My Real Estate Sale or Purchase in an Escrow Company?

You will be assigned an Escrow Officer. He or she will compile your contractual agreements with the seller into Escrow Instructions which will be sent out to the buyer, seller and Realtors® involved in the sale.

Escrow Instructions

Review these instructions with the purchase contract. If you see a misspelling, call your Escrow Officer and real estate professional. Sign the instructions and return them back to the escrow company within 5 days or less.

Confidential Statement of Information

Along with your escrow instructions will be a Confidential Statement of Information form. This form enables the title insurance company to ensure the successful transfer of title. It covers where you have lived in the past 10 years along with other information so the title company can perform title search.

Other documents that are in your Escrow package include:

• Homeowner's Insurance form - your property will need fire insurance. So, call your local insurance agent to arrange for that. Then, fill out the form or call your escrow officer
• Preliminary Change of Ownership - it must be submitted to the County Recorder with the Grant Deed (all done by your escrow company). This is used by the Tax Assessor to determine your property taxes.

• Vesting Worksheet - indicates how you plan to take title to the property. Consult your tax professional or Certified Public Accountant for advice on making a decision that best suits your financial and estate planning goals.

>When your loan is finalized, you will need to bring your personal identification card or Driver's License to escrow to sign the loan documents and other closing documents at the close of escrow