Page 21 - English CA Buyer Seller Guide
P. 21
Life of an Escrow
It all begins with the offer & acceptance THE ESCROW OFFICER Agents rely on the Escrow Officer's www.ChicagoTitle.com
skillfully negotiated by the real estate coordination of documents, loans, title &
agents representing Buyer and Seller. • Receives an order for escrow and title inspections to close the transaction on time.
services.
THE BUYER(S) THE SELLER(S)
• Orders the preliminary report and
• Tenders a written offer to purchase (or accepts examination on the subject property from • Accepts Buyer's Offer to Purchase and
the Seller's counter-offer) accompanied by Chicago Title. initial good faith deposit to open escrow.
a good faith deposit amount.
• Acts as the impartial "stakeholder" or • Submits documents and information to
• Applies for a new loan, completing all depository, in a fiduciary capacity, for escrow holder, such as: addresses of Lien
required forms and often prepaying certain all documents and monies required to holders, tax receipts, equipment warranties,
fees such as credit report and appraisal complete the transaction per written home warranty contracts, any leases
costs. Approves and signs the escrow instructions of the principals. and/or rental agreements.
instructions and other related instruments
required to complete the transaction. • Prepares the escrow instructions and • Approves and signs the escrow instructions,
required documents in accordance with grant deed and other related document
• Approves the preliminary report and any terms of the sale. required to complete the transaction.
property disclosure or inspection report
called for by the purchase and sale • With authorization from the real estate • Orders inspections, receives clearance,
agreement. (Deposit Receipt) agent or principal, orders demands on and approves final reports and/or repairs
existing deeds of trust and liens or to the property as required by the terms
• Approves and signs new loan documents judgments, if any. For assumption or subject of the purchase and sale agreement (Deposit
and fulfills any remaining condition to loan, orders the beneficiary’s statement Receipt).
contained in the contract, lender's instructions or formal assumption package.
and/or the escrow instructions. • Fulfills any remaining conditions specified
• Reviews documents received in the escrow: in the contract and/or escrow instructions;
• Deposits funds necessary to close the preliminary report, payoff or assumption approves the payoff demands and/or
escrow. Approves any changes by signing statements, new loan package and other beneficiary's statements.
amendments in the escrow instructions. related instruments. Reviews the conditions
in the lender's instructions including the • Approves any final changes by signing
T LHE ENDER (WHEN APPLICABLE) hazard and title insurance requirements. amendments to the escrow instructions or
contract.
• Accepts the new loan application and • Presents the documents, statements, loan
other related documents from the Buyer(s) package(s), estimated closing statement • Receives an order for title service.
and begins the qualification process. and other related documents to the princi- • Examines the public records affecting the
pal(s) for approval and signature/s, and re-
• Orders and reviews the property appraisal, quests the balance of the buyer's funds. real property and issues a preliminary
credit report, verification of employment, report. Determines the requirements and
verification of deposit(s), preliminary • Reviews the signed instructions and documents needed to complete the
report and other related information. documents, returns the loan package and transaction and advises the escrow officer
requests the lender's funds. and/or agents.
• Submits the entire package to the loan • Reviews and approves the signed
committee and/or underwriters for approval. • Receives the proceeds of the loan(s) from documents, releases and the order for
When approved, loan conditions and title the lender(s). title insurance, prior to the closing date.
insurance requirements are established. • When authorized by the escrow
• Determines when the transaction will be in officer, records the signed documents
• Informs Buyer(s) of loan approval terms, the position to close and advises the parties. with the County Recorder's office and
commitment expiration date and provides prepares to issue the title insurance
a good faith estimate of the closing costs. • Assisted by Title personnel, records the policies.
deed, deed of trust and other documents
• Deposits the new loan documents and required to complete the transaction with 21
instructions with the escrow holder for the County Recorder and orders the title
Buyer's approval and signature. insurance policies.
• Reviews and approves the executed loan • Closes the escrow by preparing the final
package and coordinates the loan funding settlement statements, disbursing the proceeds
with the escrow officer. to the Seller, paying off the existing
encumbrances and other obligations.
Delivers the appropriate statements, funds
and remaining document to the principals,
agents and/or lenders.
It all begins with the offer & acceptance THE ESCROW OFFICER Agents rely on the Escrow Officer's www.ChicagoTitle.com
skillfully negotiated by the real estate coordination of documents, loans, title &
agents representing Buyer and Seller. • Receives an order for escrow and title inspections to close the transaction on time.
services.
THE BUYER(S) THE SELLER(S)
• Orders the preliminary report and
• Tenders a written offer to purchase (or accepts examination on the subject property from • Accepts Buyer's Offer to Purchase and
the Seller's counter-offer) accompanied by Chicago Title. initial good faith deposit to open escrow.
a good faith deposit amount.
• Acts as the impartial "stakeholder" or • Submits documents and information to
• Applies for a new loan, completing all depository, in a fiduciary capacity, for escrow holder, such as: addresses of Lien
required forms and often prepaying certain all documents and monies required to holders, tax receipts, equipment warranties,
fees such as credit report and appraisal complete the transaction per written home warranty contracts, any leases
costs. Approves and signs the escrow instructions of the principals. and/or rental agreements.
instructions and other related instruments
required to complete the transaction. • Prepares the escrow instructions and • Approves and signs the escrow instructions,
required documents in accordance with grant deed and other related document
• Approves the preliminary report and any terms of the sale. required to complete the transaction.
property disclosure or inspection report
called for by the purchase and sale • With authorization from the real estate • Orders inspections, receives clearance,
agreement. (Deposit Receipt) agent or principal, orders demands on and approves final reports and/or repairs
existing deeds of trust and liens or to the property as required by the terms
• Approves and signs new loan documents judgments, if any. For assumption or subject of the purchase and sale agreement (Deposit
and fulfills any remaining condition to loan, orders the beneficiary’s statement Receipt).
contained in the contract, lender's instructions or formal assumption package.
and/or the escrow instructions. • Fulfills any remaining conditions specified
• Reviews documents received in the escrow: in the contract and/or escrow instructions;
• Deposits funds necessary to close the preliminary report, payoff or assumption approves the payoff demands and/or
escrow. Approves any changes by signing statements, new loan package and other beneficiary's statements.
amendments in the escrow instructions. related instruments. Reviews the conditions
in the lender's instructions including the • Approves any final changes by signing
T LHE ENDER (WHEN APPLICABLE) hazard and title insurance requirements. amendments to the escrow instructions or
contract.
• Accepts the new loan application and • Presents the documents, statements, loan
other related documents from the Buyer(s) package(s), estimated closing statement • Receives an order for title service.
and begins the qualification process. and other related documents to the princi- • Examines the public records affecting the
pal(s) for approval and signature/s, and re-
• Orders and reviews the property appraisal, quests the balance of the buyer's funds. real property and issues a preliminary
credit report, verification of employment, report. Determines the requirements and
verification of deposit(s), preliminary • Reviews the signed instructions and documents needed to complete the
report and other related information. documents, returns the loan package and transaction and advises the escrow officer
requests the lender's funds. and/or agents.
• Submits the entire package to the loan • Reviews and approves the signed
committee and/or underwriters for approval. • Receives the proceeds of the loan(s) from documents, releases and the order for
When approved, loan conditions and title the lender(s). title insurance, prior to the closing date.
insurance requirements are established. • When authorized by the escrow
• Determines when the transaction will be in officer, records the signed documents
• Informs Buyer(s) of loan approval terms, the position to close and advises the parties. with the County Recorder's office and
commitment expiration date and provides prepares to issue the title insurance
a good faith estimate of the closing costs. • Assisted by Title personnel, records the policies.
deed, deed of trust and other documents
• Deposits the new loan documents and required to complete the transaction with 21
instructions with the escrow holder for the County Recorder and orders the title
Buyer's approval and signature. insurance policies.
• Reviews and approves the executed loan • Closes the escrow by preparing the final
package and coordinates the loan funding settlement statements, disbursing the proceeds
with the escrow officer. to the Seller, paying off the existing
encumbrances and other obligations.
Delivers the appropriate statements, funds
and remaining document to the principals,
agents and/or lenders.
