How escrow works
Escrow is the neutral middle of a home sale: we hold the money and the paperwork until every condition in the contract is met, then we pay everyone and the deed records. Here's what that looks like from your side, in order.
- Questions
- 949.409.4005
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Opened
The file exists and everyone has our number.
An agent sends us the purchase contract, the property address, the price and the parties. We open the file, assign the escrow officer and send everyone the escrow number and the officer's direct line.
You'll get an email from us with what we need from you and by when. Nothing you receive from us at this stage asks you to send money.
- Who does what
- Listing or buyer's agent opens it. Buyer and seller hear from us within the first day or two.
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Deposit in
The buyer wires the good-faith deposit.
The contract sets how many days the buyer has to deposit, usually three business days. The deposit comes in by wire only; we don't accept ACH or online transfers into the trust account.
Call the office to confirm the wire instructions before sending. Once the wire is out, text or email us so we can watch for it.
- Who does what
- Buyer, with the buyer's agent. This is the step fraudsters target, so it's the step we're strictest about.
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Title and disclosures
The preliminary title report and the seller's paperwork.
Title issues a preliminary report showing who owns the property and what's recorded against it: loans, liens, easements, HOA. We order payoff statements for anything that has to clear at closing.
The seller completes the state and local disclosures and delivers them to the buyer. If there's an HOA, we order the HOA documents; they take time and cost money, so the earlier the better.
- Who does what
- Seller and listing agent for disclosures; the title company for the report; us for payoffs and HOA orders.
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Contingencies
Inspections, appraisal, loan approval, and the buyer's decision.
The buyer inspects the property, reviews the disclosures and the title report, and the lender orders an appraisal. The contract gives each of these a deadline, commonly 17 days from acceptance, though the parties can set any number.
Repairs, credits and price changes get negotiated here and written up as addenda. When the buyer removes contingencies in writing, the deposit is generally at risk if they walk away after that.
- Who does what
- Buyer and buyer's agent lead; the lender and appraiser; both agents on any addendum.
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Signing
Loan documents and closing paperwork, signed before a notary.
The lender sends loan documents to us. We prepare the closing statement showing every charge and credit, and both sides review it before signing. Sellers usually sign a few days ahead; buyers sign once the loan documents arrive.
Signing happens with a notary. We'll set the appointment with you.
- Who does what
- Buyer and seller, with us and a notary. Bring government ID.
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Funding
The buyer's closing funds and the lender's money arrive.
After signing, the buyer wires the balance of the down payment and closing costs, again by wire, again confirmed by phone first. The lender reviews the signed package and funds the loan.
We balance the file: every dollar in, every dollar out, matched to the closing statement.
- Who does what
- Buyer for closing funds; the lender for the loan. We confirm receipt of each.
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Recorded and closed
The deed records with the county and the keys change hands.
Title records the deed with the county recorder. Recording is what makes the sale official: at that moment the buyer owns the home. We disburse the seller's proceeds, pay off the old loans, pay the agents, and send final statements to everyone.
Keys are handed over per the contract, usually on recording. You'll get your final closing statement from us for your records and taxes.
- Who does what
- Title records; we disburse; the agents handle keys.