escrow & title
General Escrow Process
When you have an executed contract to purchase/sell a property, you'll need to open escrow immediately. Your Broker/Agent will help you with getting this set up if you don't have a preference. As you do more transactions and grow your business you'll want to pick a reliable company to work with. Below is a general outline of the escrow process:
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Receive copy of executed Purchase & Sale Agreement.
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Prepare Escrow Instructions and amendments, as necessary.
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Collect all required forms from seller: Statement of Information or Entity documents, Cal-Firpta, Firpta, 1099 forms, loan information sheet.
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Review and clear items on preliminary title report ( such as demands & liens)
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Prepare the approved estimated closing statements.
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Receive the executed Grant Deed.
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Receive closing funds.
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Schedule the recording for “Close of Escrow”.
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Once all funds and documents are received, scheduling the closing date is determined on the purchase agreement. An average closing date is 30 - 45 days.
What Does a Title Company Do?
The title company's main role is to search for and examine public records – investigate all information surrounding title to the property. The facts that are uncovered during the initial search will determine the following:
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That the seller is, in fact, the legal owner of the property.
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That the “estate” or degree of ownership being sold is currently and accurately vested with the seller.
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The presence of any unsatisfied liens which must be satisfied before “clear title” can be conveyed.
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Existing restrictions, easements, rights of way or other rights granted to others who are not owners which may limit the right of ownership.
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The status of property taxes and other public or private assessments.