WHAT IS ESCROW? Escrow protects all of the relevant parties in a real estate transaction, including the seller, the home buyer, and the lender, by ensuring that no escrow funds from your lender and other parties change hands until all of the conditions in the agreement have been met. Escrow is a transaction in which one person deposits money, evidence of title, or item of value to a third party to be delivered to another person upon completion of a prescribed condition of event. Please refer to the California Escrow Law - Section 17003 for legal specifications.
Why do I need Escrow?
WHY DO I NEED ESCROW? Escrow is designed to assure the buyer, seller, lender, and borrower that all deposited money, evidence of title, or item of value will remain in the protected/safe possession of the escrow holder and will only be disbursed and/or conveyed when all conditions of the transaction have been met.
HOW IS THE ESCROW COMPANY CHOSEN?
HOW IS THE ESCROW COMPANY CHOSEN? The escrow company is commonly selected by written agreement between the principals. In a refinance situation, the loan broker may recommend an escrow. In a purchase/sale transaction, a real estate broker may recommend an escrow holder; however, it is the right of the principals to choose and mutually agree upon an escrow company that is competent and experienced in the escrow type at hand.
How Can I Help Expedite the Escrow Process?
HOW CAN I HELP EXPEDITE THE ESCROW PROCESS? The key to a smooth escrow process is to read and understand your escrow instructions. If you do not understand them, ask your designated escrow officer to explain the instructions. As your escrow officer is not an attorney and cannot practice law, please consult your lawyer for any legal advice. The job of the escrow officer is to follow the instructions provided by the principals in the transaction, not to advise on the terms of the deal.
AS A SELLER, WHAT Can I EXPECT TO PAY IN CLOSING COSTS?
AS A SELLER, WHAT CAN I EXPECT TO PAY IN CLOSING COSTS? Sellers are responsible for 50% of escrow fees, as well as any additional title fees and county transfer tax. The seller is commonly expected to pay for:
• Owner’s Title Policy • Real Estate Commission • Escrow Fee • Sub-Escrow Fee • Processing Fee (Doc Prep) • Recording Fees • Document Transfer Tax (City & County) • Payoff of All Loans • Termite Inspection/Completion • Home Warranty (As Per Contract) • Tax Proration • Homeowner Association Dues, Transfer Fees, & Document Fees • Any and All Delinquent Taxes • Zone Disclosures • Rent Prorations/Security Deposits
AS A Buyer, WHAT Can I EXPECT TO PAY IN CLOSING COSTS?
AS A BUYER, WHAT CAN I EXPECT TO PAY IN CLOSING COSTS? Buyers are responsible for 50% of escrow fees. The buyer is commonly expected to pay for:
• Lender’s Title Policy • Escrow Fee • Sub-Escrow Fee • Processing Fee (Doc Rep) • Notary Fee • Recording Fees • All New Loan Charges • Prepaid Interest on New Loan • Fire Insurance for One Year • Tax Proration • Homeowner Association Dues • Loan Tie-In Fee • Rent Prorations/Security Deposits