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Disinterested Third Party
"Escrow" means any transaction wherein any person or persons for the purpose of effecting and closing the sale, purchase, exchange, transfer, encumbrance, or lease of real or personal property to another person or persons, delivers any written instrument, money, evidence of title to real or personal property or thing of value to a third person to be held by such third person until the happening of a specified event or other performance of a prescribed condition or conditions, when it is then to be delivered by such third person, in compliance with instructions under which he is to act, to a grantee, grantor, promise, promisor, obligee, obligor, lessee, lessor, bailee, bailor, or any agent or employee thereof.
Buying or Refinancing a Home? Here is What To Expect From Escrow
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TYPICAL PURCHASE
(all items in red see glossary of terms following) |
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1. Purchase and Sale Agreement: is signed by all parties and delivered to Escrow
2. Preliminary Title Report: is ordered from Title Company
3. Copies of Title Report are sent to all parties along with letters of inquiry.
4. Payoff Figures and any other information necessary to clear title are obtained
5. Loan Documents from Buyers lender are received and reviewed *
6. Closing Documents are prepared including a settlement statement
7. Individual Appointments are made with Buyer and Seller
8. Loan Documents are signed and returned to lender for funding approval*
9. Original Deed and Deed of Trust are sent to County Recorder
10. Document(s) are recorded
11. Funds needed to close are received from lender and buyer *
12. Funds are disbursed to clear title, pay seller, and closing costs
13. Final Closing Statement is mailed out
14. Reconveyance(s) is recorded when received from party(s) paid off
15. Owners Title Policy is mailed out
* All Seller financing would eliminate steps 5, 8, & 11.
* All Cash purchase would eliminate steps 5 & 8, and eliminate lender on 11. |
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TYPICAL REFINANCE |
1. Lender or Mortgage Broker opens escrow
2. See 2-6 above
3. Appointment is made with Borrower
4. Documents are signed and returned to lender for approval
5. Original Deed of Trust is sent to County Recorder
6. Document(s) are recorded
7. Funds needed to close are received from lender
8. See 12-14 above |
REGULATORY QUESTIONS |
