Exposing the Essential Events of Escrow--The Condensed Version

In California escrow companies are the repositories for all agreements, documents and funds from the time a purchase agreement is accepted until the property is recorded in the new owner's name. Escrow is a neutral third party and they direct the transaction pursuant to instructions from the parties to the transaction--seller, buyer, lender etc. Each real estate transaction is unique and involves a variety of steps and requirements uniquely its own. However, there are some general similarities.

Escrow is responsible for drawing up amendments to the original contract, and securing signatures from all parties to the purchase contract agreeing to a specific change. Escrow may issue cancellation at the direction of one party to the contract, but may not release deposit funds until all parties to the contract have agreed to such a release.

Escrow works closely with the lender and title company to secure funds and title requirements during the escrow period. Most escrows are typically 30 to 60 days in length. There are always exceptions to the rule and I have closed a 15 day escrow and a 100 plus day escrow. Extensions to the escrow period must be mutually agreed upon as it involves a change from the original agreement.

Once all contingencies have been removed escrow will contact the lender and request funding. Escrow sets up the recording with the County Recorder and works closely with the title company and lender to transfer funds and payoff demands from previous lenders, taxes and other fees. The remaining funds are sent to escrow to be given to the seller after any remaining fees are deducted.

Upon satisfactory settlement the seller receives a check and the buyer receives the keys. Escrow is closed, but during those 30 to 60 days escrow solves many problems and manages a plethora of calls, emails and face to face meetings. A good escrow officer is often one of the most important links in the real estate chain.

Norma Toering & Team RE/MAX Palos Verdes Realty
(310) 493-8333 / Office Phone: (310) 831-0800

South Bay Los Angeles cities I sell real estate, property, houses and homes in: Palos Verdes Estates, Rolling Hills, Rolling Hills Estates, Rancho Palos Verdes, San Pedro, Long Beach, Torrance, Lomita, Redondo Beach, Hermosa Beach and Manhattan Beach.

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