2. FOLLOWS UP ON CONTINGENCIES:
There will be various contingency dates in a Real Estate Sales Contract. The parties
need to be very aware of these dates, and be sure that the actions required are
performed in a timely manner.
Contingencies usually include, but are not limited to: Buyer’s loan approval;
Approval of the Preliminary Title Report; Approval of Termite, Physical, and other
home inspections. Both parties should stay in close touch with their Real Estate Agent
regarding these important dates.
3. PAYS OFF EXISTING MORTGAGES AND LOANS:
The Title Company will pay off the seller's existing mortgage, loans, and obligations
when so ordered in the Escrow Instructions.
Unless the Buyer takes over the Seller's existing loan(s) on the property, the loan(s)
will be paid off as part of the escrow process. The Seller needs to furnish complete
information to the Escrow Officer and Real Estate Agent on each loan issued against
the property. (The name of the lender, the loan number, address and phone number
of the lender, plus the Seller's SS#.)
The Seller's escrow officer will need this information to order loan payoff demands,
so the loan(s) may be paid off correctly during the escrow.
Homeowners’ Association information may also be required if selling a condominium,
townhouse, or a property located in a planned unit development. This information
helps insure the timely closing of the escrow.
4. CONDUCTS THE CLOSING DOCUMENTS SIGN-OFF APPOINTMENT:
An appointment is required for the Escrow Closing Documents sign-off. Your Real
Estate Agent will arrange a convenient time to meet with the Escrow Officer. Expect
the process to take approximately one hour.
The Grant Deed as part of the Escrow Closing Documents, and your signature will be
notarized by the Escrow Officer, or another qualified notary public.
Proper identification is needed for this procedure:
There are several acceptable forms of identification which may be used during the
escrow process. These include: A current driver’s license, Passport, etc. One of these
forms of identification must be presented at the signing of escrow in order for the
signature to be notarized.
When the Buyer’s loan is approved, and loan documents are sent to the Title Company,
the Escrow Officer, or the Escrow Assistant handling the transaction, will prepare the
Escrow Closing documents, and the Grant Deed to the property.
The Escrow Officer or Real Estate Agents will contact the Seller and Buyer for an
appointment time to sign the Escrow Closing Documents and the Grant Deed.
The Grant Deed is the document which legally transfers Title to the property to the
new owner. The Grant Deed is recorded at the time escrow closes.
At this time, the Escrow Officer informs the Seller of the amount of proceeds they will
receive from the sale of the home. If the seller is purchasing another home, then
arrangements can be made to transfer funds over to their purchase escrow.
On rare occasions, funds are insufficient to close escrow, and the Seller, must deposit
money into the escrow. Should this situation occur, either a Bank Cashier’s Check, or
a Certified Check issued by a Nevada Financial Institution. and made payable to the
Escrow Company in the amount indicated by the Escrow Officer or Escrow Assistant,
is preferred.
A personal check may delay the closing, since the escrow company is required by law
to have good funds before disbursing funds from escrow. Similarly, an out-of-state
check could cause a delay in closing, due to delays in clearing the check.
The Buyer must also pay their Escrow closing costs at the time of the Document
signing. The Escrow Officer will inform the Buyer of the exact amount needed well
before the signing appointment, and this also needs to be paid via a Cashier's or a
Certified Check.
5. COMPLETES AFTER SIGN-O FF PROCEEDURES:
* After the Buyer signs the loan documents:
The Escrow Officer returns them to the New Mortgage Lender for a final review.
When the final review, which normally takes a few days, is satisfactorily completed,
the lender is ready to fund the buyer’s loan, and notifies the Escrow Officer so that
all necessary work can be completed to sign and record the closing documents, and
the ‘Close of Escrow’ can occur. ‘Close of Escrow’ signifies the legal transfer of title to
the property from the Seller to the Buyer, and is the culmination of the transaction.
* After Seller and Buyer have signed all necessary instructions and documents:
Usually, the Grant Deed and Deed of Trust are recorded within one working day of
the escrow’s receipt of loan funds.
6. RECORDS THE TRANSACTION’S LEGAL DOCUMENTS:
The title company records the appropriate legal documents with the County
Recorders Office, thus giving public notice of the transaction.
A final settlement statement and a check for the proceeds will be available to the
Seller on the day the sale is completed, documents are recorded and the escrow is closed.
7. WORKS AFTER THE CLOSE OF THE ESCROW:
What happens after the loan has been finalized, the documents signed and recorded,
and the escrow closes? Financial settlement is completed, but there are still several
steps which must be accomplished to actually complete the transaction.
The Seller's existing loan has been paid in full from the escrow. The lender is required
by law to issue a full reconveyance of the loan to the seller. As soon as the reconveyance document, which removes the previous Deed of Trust is received, it must be recorded,
and the original Deed returned to the Seller. This may take up to several weeks.
However, the Seller need not be concerned by this delay, since it is normal.
Also, in some cases, the Escrow holder will be instructed to hold certain funds in the
property’s Escrow account to pay off obligations which may not be complete and due
till after the ‘Close of Escrow’. An example of this might be holding of funds necessary
to correct a structural problem, remodeling, or due to termite repair work.
Upon completion of the project and receipt of the proper documentation and releases,
the Escrow Officer will disburse the reserved funds, and forward any excess funds after
all such obligations are meet, to the Seller.
