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THE LIFE OF AN ESCROW
CHICAGO TITLE CALIFORNIA BUYER & SELLER GUIDE
The Buyer(s)
• Tenders a written offer to purchase (or accepts the seller’s counter-offer) accompanied by a earnest money deposit amount.
• Applies for a new loan, completing all required forms and often prepaying certain fees such as credit report and appraisal costs. Approves and signs the escrow instructions and other related instruments required to complete the transaction.
• Approves the preliminary report and any property disclosure or inspection report called for by the purchase and sale agreement. (deposit receipt)
• Approves and signs new loan documents and fulfills any remaining conditions contained in the contract, lender’s instructions and/or the escrow instructions.
• Deposits funds necessary to close the escrow. Approves any changes by signing amendments to the escrow instructions.
The Lender (when applicable)
• Accepts the new loan application and other related documents from the buyer(s) and begins the qualification process.
• Orders and reviews the property appraisal, credit report, verification of employment, verification of deposit(s), preliminary report and other related information.
• Submits the entire package to the loan committee and /or underwriters for approval. When approved, loan conditions and title insurance requirements are established.
• Informs buyer(s) of loan approval terms, commitment expiration date and provides a loan estimate of the closing costs.
• Deposits the new loan documents and instructions with the escrow holder for buyer(s) approval and signature.
• Reviews and approves the executed loan package and coordinates the loan funding with the loan officer.
The Escrow Officer
• Receives an order for escrow and title services.
• Orders the preliminary report from Chicago Title.
• Acts as the impartial “stakeholder” or depository,
in a limited fiduciary capacity, for all documents and monies required to complete the trans- action per written instructions of the principals.
• Prepares the escrow instructions and required documents in accordance with terms of sale.
• Orders demands on existing deeds of trust and liens or judgments, if any.
• Reviews documents received: preliminary report, payoff or assumption statements, new loan package and other related instruments. Reviews the conditions in the lender’s instructions including the hazard and title insurance requirements.
It all begins with the offer and acceptance skillfully negotiated by the real estate agents representing buyer and seller.
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