The Life of an Escrow

THE BUYER(S)

Mutual acceptance - Buyer and Seller
mutually agree on the terms and Earnest
Money.
Loan pre-approval (when applicable) -
Applies for new loan and completing all
required forms.
Review title report, and any property
disclosure or inspection reports called for by
the Purchase Contract.
Signing - signs loan documents and fulfills
conditions contained in the Purchase
Contract, lender’s instructions and/or the
escrow instructions to complete the
transaction.
Deposit funds necessary to close the
escrow.
Complete a Statement of Information if
required by the title company.

THE LENDER (WHEN APPLICABLE)

Accepts the new loan application and
other related documents from the
Buyer(s) and begins the qualification
process.
Sends the Loan Estimate disclosing loan
repayment terms and approximate closing
costs.
Orders and reviews the property appraisal,
credit report, verification of employment,
verification of income and assets,
preliminary title report and other related
information.
Submits the entire package to the loan
underwriter for approval. When approved,
loan conditions and title insurance
requirements are established.
Informs Buyer(s) of loan approval,
conditions, lock expiration date and
provides a Closing Disclosure 3 days prior
to Signing.
Deposits the new loan documents and
instructions with the Escrow O‰cer for
Buyer’s approval and signature.
Reviews and approves the executed loan
package and coordinates the loan funding
with the Escrow Officer.

THE ESCROW OFFICER THE SELLER(S)

Receives a fully executed copy of the
Purchase Contract.
Orders the title search and examination on
the subject property.
Acts as the neutral third party in a fiduciary
capacity, for all documents and monies
required to complete the transaction per
written instructions of the principals.
Reviews documents received in the escrow:
preliminary report, payoŒ, new loan
package and other related instruments.
Reviews the conditions in the lender’s
instructions.
Escrow O‰cer prepares the escrow
instructions and required documents in
accordance with the terms of the Purchase
Contract.
Delivers Seller’s Closing Disclosure, when
required.
Signing - presents the documents, loan
package(s), Settlement Statement and
other related documents to the parties for
signature, and requests the balance of the
buyer’s funds.
Escrow O‰cer reviews the signed
instructions and documents, returns the
loan package and requests funding.
Receives the funds of the loan(s) from the
lender(s).
Releases to the Title O‰cer the Deed, Deed
of Trust and all other signed documents
required to complete the transaction.
Closes the escrow by preparing the final
Settlement Statement, disbursing the
funds to the Seller, paying oΠthe existing
encumbrances and other obligations. Then
deliver the appropriate statements, funds
the loan as well as distributing all remaining
documents to all parties including brokers
and/or lenders.

THE SELLER(S)

Accepts Buyer’s OŒer to purchase
accompanied by a good faith deposit to
open escrow.
Submits information to the Escrow O‰cer
such as: payoŒ, utilities, leased equipment,
homeowner’s association, rental
agreements, etc.
Fulfills any remaining conditions specified
in the purchase and sale agreement.
Signs the escrow instructions, deed and
other related documents required to
complete the transaction.
Complete a Statement of Information if
required by the title company.

TITLE OFFICER

Receives a request for title report.
Examines the title to the real property and
issues a title report.
Determines the requirements and
documents needed to complete the
transaction and advises the Escrow O‰cer.
Submits a title report to all parties.
Upon receipt of the Deed, Deed of Trust and
other signed documents, title o‰cer will
record the signed documents with the
County Recorder’s o‰ce.
Prepares to issue the title insurance
policies.

THE REALTOR

Provides to Escrow O‰cer a fully executed
copy of the Purchase Contract with
complete property address including zip
code and property profile (if available).
All Amendments, Counter OŒers, and any
Addendums.