Once an agreement between you and the seller has been
finalized, escrow is ready to be opened. Escrow
essentially allows for a disinterested third party (escrow
holder) to keep all valuables and documents in trust until
certain conditions are fulfilled.
Why You Need An Escrow: As the buyer, you want
the assurance that no funds will change hands until all of
the instructions in the transaction have been followed.
This may include completion of all inspections and any
repairs that were agreed upon.
How Escrow Works: The escrow holder is obligated
to safeguard the funds and/or documents while they are in
their possession, and to disburse funds and/or convey
title only when all provisions of the escrow have been
These provisions are written in the escrow
instructions, which are drafted from the provisions agreed
upon in the purchase agreements by the parties involved in
The escrow officer will endeavor to expedite the timely
closing by keeping all parties informed, handling
documents and paying all bills as authorized, responding
to authorized requests from the principals, closing escrow
after the terms and conditions are met, distributing funds
in accordance with the instructions and providing a
written closing statement of all the charges and credits
to your account.
Your Responsibilities During Escrow: Your most
important role during this time is to read and understand
your escrow instructions. Be sure to ask your escrow
officer to explain anything you don't understand, and make
sure any legal questions are directed to your attorney.
In order to expedite the closing of escrow you should
respond quickly to any correspondence and ensure any funds
requested are delivered in the required form - cashiers
checks or wired funds are preferable since escrow can only
close on cleared funds and most other methods of funds
transfer take more time to clear.
When escrow closes you will receive all your paperwork
within a few days. As the new owner, you will receive your
recorded deed directly from the County Recorder's office.
Throughout my web site, there are buttons which link you
to more useful information which will assist you with your
home search or with the sale of your home.