CalBRE License #01867409 | Malibu | Northridge | Porter Ranch | Westlake Village | Woodland Hills | Calabasas | Encino

Escrow Process

What Is An Escrow and How Does It Work?

An escrow is a financial arrangement where a third party holds and regulates payment of the funds required for two parties involved in a given transaction. It helps make transactions more secure by keeping the payment in a secure escrow account which is only released when all of the terms of an agreement are met as overseen by the escrow company. Escrow are a neutral party to the transaction.

Escrow Process/Timeline
Usually 30-45 Days

(Sellers Escrow Timeline Below)

Buyers and Sellers: There are 3 contingencies that must be evaluated, agreed upon, and removed prior to the close of escrow. These are investigations done prior to purchasing or selling property in the state of CA. Sales are contingent upon the items below. Contingencies (Inspection and Appraisal) are usually 17 days of the date you open escrow and the loan contingency is usually 21 days unless contingencies have been removed prior or negotiated down.

Buyers

 

  1. Offer gets accepted and agreed to by both buyer and seller.
  2. Escrow is opened by the listing agent once the contract has been signed and acknowledged by both parties.
  3. Buyers EMD (Earnest Money Deposit) is due by wire or check to escrow and made out to escrow within 3 days of opening. Wire is the fastest way. Escrow will send the wire instructions to buyers agent upson buyers/agents request.
  4. Inspections are ordered through the buyers agent. You will be getting your Preliminary Title Report (Prelim) from escrow/title during this period along with Escrow Instructions and paperwork to fill out. Property disclosures from the seller will also be given to you at this time to review and discuss. Once Inspections, Disclosures, and Prelim are approved by the buyer, this contingency is removed, unless already removed.
  5. Appraisal is ordered. Appraisal contingency is removed once appraisal numbers are in, or negotiated, and approved by both buyer and the seller.
  6. Escrow will be providing information to the lender during this process to meet and clear lender conditions prior to final loan approval and before closing escrow.
  7. Loan is evaluated and underwritten approval is given to the buyer prior to removing this contingency. Once all bank and lending conditions have been met, buyer removes this and all contingencies. We move to closing!
  8. Final Walk Through is done on the property with buyer(s) and buyers agent. Sometimes seller will be there to instruct buyer on any special features of the home, but sellers are not required to be there. This is the opportunity for the buyers and agent to go over any repairs done to the property if negotiated and agreed upon during the inspection period.
  9. CD (Closing Disclosure) is released by the lender to acknowledge and release loan documents after a 3 day hold.
  10. Escrow, Lender, or Agent will call the buyer to confirm Loan Documents are in after the 3 day hold and have been released for signing with a notary. This usually takes place at the escrow office. Buyer is advised to bring a Cashiers Check for the rest of the down payment and closing costs amount into escrow for signing or is advised to wire the amount after signing loan documents. Your lender can give you the final amount due for closing.
  11. Once Loan Documents are signed and money is in escrow, buyer is set up to fund the following day. Sometimes this can take up to 2 days depending on where the escrow company is located and how long it takes to package loan documents once they have been signed.
  12. GREAT NEWS! You’re almost Closed and Funding confirmation is given by the agents once they hear the news from escrow that the loan is officially funded!
  13. YOU MADE IT! CLOSING day usually happens the day after funding and happens anytime from 8am-6pm Mon-Fri. The time is not up to the agents or escrow unfortunately. Once funding is confirmed, escrow will send funding and wire information along with final documents into title and the county for recording. We are put in line to record and as soon as we’re recorded, we hear the great news. You will be hearing from us as soon as we have confirmation!
  14. Your agent will set up an appt to meet once we have confirmation on closing to meet you at the property to deliver your keys. Be ready to take some great pictures in front of your new home!
  1. House is usually delivered to buyer the day escrow closes unless agreed to otherwise between both parties. If you have chosen to receive a wire, you will receive the wire into the account provided to escrow 24-48 hrs after the Close of Escrow. You should receive a check in the mail if you provided a forwarding address and you chose to receive a check instead within 1 week of closing unless you have notified agents and escrow that you are picking up the check at the escrow office. CONGRATULATIONS! You made it!

Sellers

 

  1. Offer gets accepted and agreed to by both buyer and seller.
  2. Escrow is opened by the listing agent once the contract has been signed and acknowledged by both parties.
  3. Buyers EMD (Earnest Money Deposit) is due by wire or check to escrow and made out to escrow within 3 days of opening. This is done by buyer and buyers agent. Listing agent will give confirmation as soon as deposit is confirmed and received by escrow.
  4. Inspection dates and times are given to the listing agent for seller confirmation and approval as soon as these dates and times are set. Seller is advised to open the home for all buyer inspections and follow up inspections. Escrow will release a Preliminary Title Report (Prelim) for the buyers. The prelim discloses any title or liens on the property. Escrow Instructions will also be delivered to your home from escrow along with disclosures from the Listing Agent, both to fill out. It is important to work on disclosures together and deliver to the buyer(s) within 7 days of opening escrow.
  5. Retrofit inspection is ordered by the Listing Agent. Invoice of any work needed will be provided to seller prior to any work being done to ensure seller complies with state of CA retrofitting requirements prior to the appraisal being ordered.
  6. Appraisal is ordered by the buyers side. Seller will be notified of date and time to confirm availability. Escrow will be providing information to the lender during this process to meet and clear lender conditions prior to final loan approval and before closing escrow.
  7. Any repairs (including termite) that are negotiated between buyer and seller are worked on. Repairs usually have to be done 5 days prior to the Close of Escrow.
  8. Loan is evaluated and underwritten approval is given to the buyer prior to removing this contingency. Once all bank and lending conditions have been met, buyer removes this and all contingencies. We’re moving to closing!
  9. CD (Closing Disclosure) is released by the lender to acknowledge and release loan documents after a 3 day hold.
  10. Escrow, Lender, or Agent will call the buyer to confirm Loan Documents are in after the 3 day hold and have been released for signing with a notary. This usually takes place at the escrow office. Buyer is advised to bring a Cashiers Check for the rest of the down payment and closing costs amount into escrow for signing or is advised to wire the amount after signing loan documents.
  11. Once Loan Documents are signed and money is in escrow, the transaction is set up to fund the following day. Sometimes this can take up to 2 days depending on where the escrow company is located and how long it takes to package loan documents once they have been signed.
  12. GREAT NEWS! You’re almost Closed and Funding confirmation is given by the agents once they hear the news from escrow that the loan is officially funded!
  13. YOU MADE IT! CLOSING day usually happens the day after funding and happens anytime from 8am-6pm Mon-Fri. The time is not up to the agents or escrow unfortunately. Once funding is confirmed, escrow will send funding and wire information along with final documents into title and the county for recording. We are put in line to record and as soon as we’re recorded, we hear the great news. You will be hearing from us as soon as we have confirmation!
  14. House is usually delivered to buyer the day escrow closes unless agreed to otherwise between both parties. If you have chosen to receive a wire, you will receive the wire into the account provided to escrow 24-48 hrs after the Close of Escrow. You should receive a check in the mail if you provided a forwarding address and you chose to receive a check instead within 1 week of closing unless you have notified agents and escrow that you are picking up the check at the escrow office. CONGRATULATIONS! You made it!

MARITE COCHARD CalBRE #01867409 818 605-1220 Contact Me