Step 6 – Escrow

Once you have agreed with the seller on price and terms for the sale of a piece of real estate, the escrow process begins. Escrow is a neutral third party that holds funds and disperses them to the various parties with, and only with, the proper instructions from all parties. The escrow transactions can be fairly complex (with pitfalls and complications for the unwary), so we will guide you through all the steps. We will provide instructions to the title and escrow company to prepare the closing package, which includes a Closing Settlement Statement (called the HUD-1), mortgage and loan documents, and various government and tax forms.

We will accompany you to the Title Company to sign closing papers. The Escrow Officer will explain the purpose of each document. It will be important that you bring a photo ID as you will be signing in front of a notary. Where there is more than one Buyer, the Escrow Officer will ask how title to the property should be vested (the manner or percentage of interest in which individuals hold ownership to the property). The seller will sign her/his closing documents at the title company at a separate appointment.

Finally, the Title Company receives funds from the lender and releases them to the seller. The Title Company also records the deed of trust at City Hall. This is called the close of Escrow. We will notify you that you are now officially the owner of the property. We also make arrangements to get you the keys.

Congratulations! You are now a home owner!

For more detailed information, please feel free to contact us any time.