Page 11 - CTT-CA Real Estate Foreign Buyer & Seller Guide_English

How Does the Escrow Process Work?
An escrow is a depository for all monies, instructions and documents necessary for the pur- chase of your home, including funds for down payment and the lender’s funds and docu- ments for the new loan. It all begins with the offer & acceptance skillfully negotiated by the real estate agents representing buyer and seller.
The Buyer(s)
• Tenders a written offer to purchase (or accepts the seller’s counter-offer) accompanied by a good faith deposit amount.
• Applies for a new loan, completing all required forms and may pay for a credit report. 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.
• Approves and signs new loan documents and fulfills any remaining condition con- tained in the contract, lender’s instructions and/or the escrow instructions.
• Deposits funds necessary to close the escrow. Approves any changes by signing amend- ments in the escrow instructions.
The Seller(s)
• Accepts Buyer’s Offer to Purchase and initial good faith deposit to open escrow.
• Submits documents and information to escrow holder, such as: addresses of Lien hold-
ers, tax receipts, equipment warranties, home warranty contracts, any leases and/or rent
al agreements.
• Approves and signs the escrow instructions, grant deed and other related document re-
quired to complete the transaction.
• Orders inspections, receives clearance, and approves final reports and/or repairs to the
property as required by the terms of the purchase and sale agreement.
• Fulfills any remaining conditions specified in the contract and/or escrow instructions;
approves the payoff demands and/or beneficiary’s statements.
• Approves any final changes by signing amendments to the escrow instructions or con-
tract.
Escrow