Page 20 - CTT buyer Seller 2021_English_Flipbook_1

THE ESCROW PROCESS
CHICAGO TITLE CALIFORNIA BUYER & SELLER GUIDE
Communication Tips for Escrow
• Whencallingtheescrowofficer,havethe escrow number and buyer/seller’s names handy.
• Keeptheescrowofficerinformedonany matters that may affect the transaction.
• Directyourquestionstotheproper representative, such as:
• Real Estate Agent: Physical aspects of property, conflicts, and terms of sale.
• Lender: Loan terms, credit report issues, etc. • Escrow Officer: Escrow instructions,
documents and forms to be filled out.
How Does the Escrow Process Work?
The escrow is a depository for all monies, instructions and documents necessary for the purchase of your home, including your funds
for down payment and your lender’s funds and documents for the new loan. Generally, the buyer deposits a down payment with the escrow holder and the seller deposits the deed and any other necessary documents with the escrow holder. Prior to the close of escrow, the buyer deposits the balance of the funds required with the escrow holder. The escrow holder disburses the file, including delivering the monies to the seller, when the escrow holder:
• Forwards the deed to the title company for recording
• Is notified by the title company that a policy of title insurance can be issued showing title to the property is vested in the name of the buyer
The escrow holder thus acts in a limited capacity for both principals and protects the interests of each within the authority of the escrow instructions. Escrow cannot be completed until the terms and conditions of the instructions have been satisfied
and all principals have signed escrow documents. The escrow holder takes instructions based on the terms of the purchase agreement and the lender’s requirements.
Escrow Duties
The escrow officer’s duties typically include the following:
• Receive signed purchase agreement; prepare escrow instructions
• Receive and deposit buyer’s earnest money into an escrow account
• Serve as the neutral agent and liaison/ communication link to all parties to the transaction
• Order Preliminary Report to determine status of title to property
• Request beneficiary’s statement of pay-off demand related to existing financing
• Comply with lender’s requirements as specified in the lender’s closing instructions
• Prorate taxes, interest, insurance and rents
• Prepare or secure the transfer deed or other
documents necessary to consummate the
transaction
• Arrange appointments for buyer/seller to sign
documents
• Request and receive purchase funds from the
buyer and loan funds from new lender
• Close escrow pursuant to instructions provided
by seller, buyer, and lender.
• Arrange for recording of deeds and any other
documents as instructed
• Request issuance of the title insurance policies
• Disburse funds as authorized, including charges
for title insurance, recording fees, commissions
and loan payoffs
• Disposition of all funds held in escrow account • Prepare final accounting statements for the
parties
20