AN escrow is an arrangement in which a disinterested third party, called an escrow holder, holds legal documents and funds on behalf of a buyer and seller, and distributes them according to the buyer's and seller's instructions.
People buying and selling real estate often open an escrow for their protection and convenience. The buyer can instruct the escrow holder to disburse the purchase price only upon the satisfaction of certain prerequisites and conditions. The seller can instruct the escrow holder to retain possession of the deed to the buyer until the seller's requirements, including the purchase price, are met. Both rely on the escrow holder to carry out faithfully their mutual agreement.
An escrow is convenient for the buyer and seller because both can move forward separately but simultaneously in providing inspections, reports, loan requirements, deeds and many other items, using the escrow holder as the central depositing point. If the instructions from all parties to an escrow are clearly drafted, fully detailed and mutually consistent, the escrow holder can take many actions on their behalf without further consultation. This saves time and facilitates the closing of the transaction.
The escrow process was developed to help facilitate the sale or purchase of your home. The escrow holder accomplishes this by:
When you are buying a property, there are a lot of work to do on our part...we need to find a home, open escrow and then do our inspections and fund and close sometimes in as little as 30 to 45 days…
WHAT IS AN ESCROW ?
THE FOLLOWING IS A GENERAL GUIDLINE AS TO WHAT TO EXPECT
1. Get A PRE-APPROVAL
This will help you decide what kind of price range and area we should be looking for homes for you...
2. FIND YOUR DREAM HOME
3. WRITE AN OFFER AND SUBMIT OFFER WITH AN INITIAL DEPOSIT TO SELLER
The initial deposit is also called a honest money deposit. It's a good faith deposit to tell the sellers that we are serious and ready to buy! This check will stay in my hand, your agent, until the seller accepts our offer and open escrow. We will send the check to escrow company when escrow is opened, and then the money will be cashed by escrow company and stay with them until the the end of the escrow. At the end of escrow, that money will be applied toward your closing cost and down payment.
4. WHEN SELLER ACCEPTER THE OFFER, WE OPEN ESCROW AND SEND THE INITIAL DEPOSIT TO THE ESCROW COMPANY
5. Normally we will have 14 to 17 days of buyer's contingency period to complete the following: