Page 4 - Yavapai Sellers Guide

What is Escrow?

WHAT IS ESCROW?
Escrow is a process whereby a seller and buyer, or borrower and lender, transfer title to, or place a Mortgage
lien on, real property. Your Escrow Officer is a disinterested third party, duty-bound to follow the instructions
given by you and the other party to your escrow. The Escrow receives and holds money and documents in car-
rying out your instructions. Because an escrow involves huge amounts of money and reams of paperwork, a
professional is required to keep track of and manage the transaction. In this fast-paced real estate market, the
escrow process is an integral part of the real estate transaction, benefiting the consumer and the real estate pro-
fessional.

WANT A SMOOTH ESCROW?
Be sure you understand each document before you sign it. If uncertain, ask your agent.
Let your lender know of any problems, credit or otherwise, ahead of time.
Let your Escrow Officer know of potential hurdles, such as judgments, liens or other.
Be available—give all parties as many ways to contact you as possible.

WHAT YOUR ESCROW OFFICER DOES
Receives and holds all funds for disbursement upon closing.
Serves as the communication link to all the parties involved in the escrow.
Requests title insurance “commitment” to send to you for approval.
Requests a statement from the existing lender in order to pay off the loan on closing.
Prepares deeds and/or other documents required in the escrow and secures signatures.
Secures releases and other contingencies of record.
Closes escrow when all instructions have been carried out, which is accomplished by:
Recording of deeds and other documents as instructed.
Requesting issuance of title insurance to the buyer and/or lender.
Disbursing funds as authorized such as recording fees, proceeds to seller, etc.
Preparing final statements for the parties accounting for all of the funds deposited and disbursed.

WHAT YOUR ESCROW OFFICER DOES NOT DO
Provide legal advice.
Negotiate the transaction.
Provide investment advice.

To see our ‘Six Steps to a Successful Escrow’, go to:
www.yavapaititle.com/buyers-sellers/six-steps-to-a-successful-escrow