Steps of an Escrow

STEPS OF AN ESCROW

Step 1:  Escrow Officer receives a fully-executed contract in Escrow.

What is a “fully-executed contract?  If using a CAR Purchase Agreement and Joint Escrow Instructions, a complete contract will be:

• Signed by both Buyer(s) and Seller(s)
• All pages initialed
• Clauses (Arbitration, etc.) if appliable, initialed by both Buyer(s) and Seller(s)
• All Counters will be included

Any other changes to the transaction after the complete contract is presented would be through an Amendment, which also needs to be provided to Escrow Holder.

Step 2: Escrow Holder opens the Title order for a Preliminary Title Report and requests Legal Vesting of Property.

If Buyer is obtaining a loan, Escrow and Title Fees will be provided to Lender at opening of Escrow in order to meet TRID timelines.

Natural Hazard Disclosure Report is requested.

Homeowner Association documents and packages are requested if applicable.

Step 3:  Opening Documents are sent to Buyer and Seller, Agents and Lender.  Any title issues are addressed if needed.

Step 4:  When opening Buyer/Seller packages are received back into escrow, the Statement of Information is sent to Title Company for review, payoff demands are ordered if needed, and other title issues will continue to be addressed.

                  Continuous contact with Buyer’s Lender will be throughout the transaction, providing items needed for loan process.  Vesting Amendment, Insurance, Estimated Closing Statements and Closing Protection Letter are provided to Lender.

Step 5:  Upon full Loan Approval, Escrow Holder receives the Final Closing Disclosure (CD) from the Lender.  Many lenders require that Escrow Holder balances to this CS before it is released to Buyer for signature/approval.

                  Escrow will also create the Seller Closing Disclosure and Estimate dated on or before the Buyer Closing Disclosure and sent to Seller and Seller’s Agent for signature and review.

                  After Buyer acknowledges the Closing Disclosure, loan documents can be signed after a 3-day (business/banking days) period.

Step 6:  Executed loan documents are processed according to Lender Instructions and recording documents are forwarded to Title Company for recording upon funding from lender and released from Escrow Officer.  Escrow receives funding conditions from lender, and once all required items are provided to Lender, including receipt of any buyer closing funds, the loan is authorized to fund and transaction closes.