What is an escrow?
The buyer and seller establish terms and conditions for the transfer of ownership of a particular property. These terms and conditions are given to a neutral third party known as the escrow holder (an escrow company). An escrow officer is assigned to the transaction and they have the responsibility of seeing that these terms of the escrow are carried out. The escrow is an independent third party – the vehicle by which the interest of all parties to the transaction are protected.
How does the escrow process work?
The escrow officer takes instructions based on the terms of your Purchase Agreement and the lender’s requirements. The escrow officer can hold inspection reports and bills for work performed as required by the Purchase Agreement. Other elements of the escrow include, hazard and title insurance, and the grant deed from the seller to the buyer. Escrow cannot be completed until these have been satisfied and all parties have signed escrow documents.
How long is an escrow?
The length of an escrow is determined by the terms of the Purchase Agreement and can range from a few days to several months. The average length of an escrow is usually 45 days.
How does the closing process work?
The close of escrow consists of three steps: reviewing, signing and exchanging documents; filing of documents and the disbursement of funds.
- Reviewing, signing and exchanging documents : This is when you review & sign the closing documents.
- Filing of closing documents: The escrow officer notarizes and submits all of the paperwork to the appropriate parties involved; the lending institution and government agencies.
- Disbursement of Funds: The escrow officer authorizes the funds of the transaction to be sent to appropriate parties according to the instructions of the transaction.
How does your deed get recorded?
Your deed gets recorded once the escrow officer sends it to the county registrars office. You’ll receive a copy of the actual recorded deed in the mail in approximately several weeks after the registrar office files the paperwork.