The Life of an Escrow
We know most people; have no idea of how Escrow works or exactly what happens during a real estate transaction that is in “Escrow”, but don’t worry, Oakwood Escrow is here to take you through the Life of an Escrow and the preparation to transfer the title of a property from the Seller to the Buyer.
Let’s assume this is a standard 30-day escrow with a conventional loan.
You have an accepted offer, now what?
Day 1 – 6 Let’s get this Escrow Rolling.
On day 1, your Real Estate Agent opens Escrow by submitting the fully executed Residential Purchase Contract along with any supporting documents to the Escrow Officer. Once the Escrow Officer receives the Purchase Contract, they begin preparing the Escrow Instructions and any documentation that needs to go along with them. Also, on day 1, the Escrow Officer will contact you to introduce themselves as well as their team. During the introduction they will request information from you and if you are the buyer in the transaction, they will provide you with instructions on how to submit your earnest money deposit into Escrow.
By Day 3, the Escrow Officer will provid all parties with the Receipt of Earnest Money Deposit, order the Preliminary Title Report, Order HOA Documents, contact the lender, and send out the Buyer and Seller Packages for review and completion.
*IMPORTANT*: It will help the escrow process if you complete the buyer/seller package that Escrow sends you and return it as soon as possible.
Between days 4-6, the Escrow Office will be in receipt of the Preliminary Title Report and HOA Documents. They will send these documents out to all parties for review.
Now that Escrow is in receipt of the Preliminary Title Report, the Escrow Officer will review the report and take action on any liens that need to be cleared from the report and order any payoff demands necessary to clear items on the title report.
Day 7-17 – Waiting for Contingency to be removed
By day 17, the buyer will remove all contingency and the Escrow Officer will contact the lender and request the loan approval and/or status of the loan.
Day 25-29 – Setting up to Record and Close
By Day 25-27, the lender will have provided the Escrow Officer with the Loan Documents for Escrow to package and coordinate the signing of the loan documents with the buyer. Your escrow officer will prepare the closing documents and provide all parties with the Settlement Statement for review and signature along with any outstanding items that need to be signed. At this time, it is so important that you review your settlement statement so that you are not surprised by any fees, deduction, or credits. Also, during this time the buyer will need to deposit any remaining cash needed to close into Escrow.
Now by Days 28-29, the Escrow Office has sent the signed loan documents back to the lender for review, once reviewed the lender will fund the Buyer’s loan and your Escrow office will receive authorization for recording and will setup your file for recording.
Day 30 – Closing Day!
On day 30 your Escrow is now closed, and the grant deed has been recorded, the only thing left for your Escrow Office to do is finalize the paperwork for your transaction and disburse the funds from the Escrow to the appropriate parties of the transaction.
Your Escrow is complete!
If you have any questions or would like more details on the Escrow process, contact your Oakwood Escrow Representative.