Updated: Aug 29, 2020
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:
Receive copy of executed Purchase & Sale Agreement.
Prepare Escrow Instructions and amendments, as necessary.
Collect all required forms from seller: Statement of Information or Entity documents, Cal-Firpta, Firpta, 1099 forms, loan information sheet.
Review and clear items on preliminary title report ( such as demands & liens)
Prepare the approved estimated closing statements.
Receive the executed Grant Deed.
Receive closing funds.
Schedule the recording for “Close of Escrow”.
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:
That the seller is, in fact, the legal owner of the property.
That the “estate” or degree of ownership being sold is currently and accurately vested with the seller.
The presence of any unsatisfied liens which must be satisfied before “clear title” can be conveyed.
Existing restrictions, easements, rights of way or other rights granted to others who are not owners which may limit the right of ownership.
The status of property taxes and other public or private assessments.