Tim Tran / Su Lim
"ALL YOU NEED TO KNOW"
Phone: 626-285-2121, Ext. 8003
Cell: 626-429-2221
Everything You Should Know About Escrow

Buying and selling a home is a big step, involving the tranfer of large sums of money. It's important that the transfer of these funds and related documents be handled in a knowledgeable, neutral and secure manner.

It's the job of the escrow agent to impartially carry out the written instructions of the buyer or seller, including receiving funds and documents necessary to imply with those instructions, completing or obtaining required forms and delivery of all items to the proper parties upon closing. Only when all the instructions in the escrow have been carried out can the closing take place.

How To Prepare For An Escrow Closing?

  1. The buyer and seller should allow approximately one to one and half hours for the signing of loan, grand deed, and closing documents.
  2. The buyer and seller must carefully review all escrow papers sent to them by the escrow agent. If the papers reflect the agreeements between the buyer and seller, each party should sign all of the papers and return them to the escrow agent as soon as possible.
  3. The buyer and seller must bring a photo ID, such as driver's license, to the closing appointment for signing, notarizing of the loan documents, and grand deed.
  4. Any required funds must be brought in the form of a cashier's check (unless the escrow agent will accept other types of funds) and should be brought to the escrow agent when the loan documents are to be signed.

What An Escrow Holder Does?

  • Serves as an impartial third party and acts as a communications link to all involved parties.
  • Prepare escrow instructions.
  • Orders a preliminary title search to determine the present status of the title to the property.
  • Requests a Beneficiary's Statement if a debt or obligation is to be assumed by the buyer and a Demand Statement to clear all existing liens and encumbrances not assumed by the buyer.
  • Complies with all lender requirements as specified in the lender's instructions, as well as with what is defined in the escrow instructions, sales agreement or amendments.
  • Receives earnest money (down payment) from the buyer and loan funds from the new lender, if applicable.
  • May prepare or secure the deed of trust or other documents related to escrow.
  • Records deeds and documents and sends to title company to research.
  • Prorates taxes, interest, insurance and rents according to instructions, including fees, real estate commission, loan payoffs and other expenses incurred.
  • Prepares final closing statements showing itemization for all buyer and seller funds.

For further assistance with any questions you may have about escrow procedure or any other real estate needs, please feel free to give me a call at 626-429-2221 or email me.