WHAT  IS  AN  ESCROW?

An Escrow is an independent “stakeholder” account, and is the vehicle by which
the interests of all parties to the transaction are protected.

The escrow is created after you execute the contract for the sale of your home, and becomes
the depository for all monies, instructions, and documents pertaining to the sale.  

Some aspects of the sale are not a part of the Escrow.

For example, the buyer and seller must decide which fixtures or personal
property items are included in the sales agreement.  

Similarly, loan negotiations occur between the buyer and the lender.

Your real estate agent can guide you in these non-escrow matters.

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
transfer of the grant deed from the seller to the buyer.

Escrow cannot be completed until these items have been satisfied
and all parties have signed the Escrow Closing Documents.

How Is An Escrow Opened?

Either the Seller's or Buyer's  real estate agent may open the escrow. 

When the Purchase Agreement has been excuted, the Buyer's agent places the Buyer's 
 initial deposit into an escrow account at the Escrow Company.

How Do I Know Where My Money Goes?

Written evidence of the deposit is included in the Buyer's copy of the sales contract.  

The funds are then deposited in a separate escrow or trust account.  

The Buyer receives a receipt for the funds from the Escrow Company.

What Information Do I Need To Provide?

The Buyer may be asked to complete a 'Statement of Identity' as part of the escrow paperwork.  

Because many people have the same name, the 'Statement of Identity' is used to identify the
Buyer as the specific person in the transaction through information such as;
date of birth, social security number, etc.  

This information is considered as and kept confidential.

How Long  Does An Escrow Take To Close?

The time necessary to complete the escrow is determined by the terms and conditions
of the Purchase Agreement.  

Normally escrows will take between 45 to 60 days to close,
but can range from just a few days to several months.