The Days In The Life Of An Escrow- Buying Palm Springs, CA Home
In Southern California, we have something called Escrow and yes it has a life all its own. The job of the Escrow company is to process all aspects of the new home buying transaction, ensure that all documents are properly executed, then have everything recorded with the County Recorder Office.
The process begins with the offer and acceptance as negotiated by the real estate agents representing Buyer and Seller. The seller’s agent will open the Escrow once all documents are signed after all terms and price are agreed upon.
Steps For The Buyer
- Submits a written offer to purchase a property accompanied by a good faith deposit amount as agreed in the contract.
- Approves and signs the escrow instructions and other related documents required to complete the transaction.
- Approve the preliminary title report and any property disclosures and inspection report required in the purchase and sale agreement. The seller has full obligation to submit all disclosures in a timely manner.
- Approves and signs new loan documents and fulfills any remaining conditions requested in the contract, lender’s instructions and/or the escrow instructions.
- Deposit funds necessary to close the escrow.
The Seller Steps are:
- Accept Buyer’s Offer to Purchase. Initial good faith deposit is sent in to open escrow.
- Submit documents and information to escrow holder, such as: addresses of lien holders, tax receipts, equipment warranties, home warranty contracts, any leases and/or rental agreements. Submits all disclosures to Buyer for review and signature.
- Approves and signs the escrow instructions, grant deed and other related documents required to complete the transaction.
- Orders inspections, receives clearances and approves final reports and/or repairs to the property as required by the terms of the purchase and sale agreement (Deposit Receipt).
- Fulfills any remaining conditions specified in the contract and/or escrow instructions; approves the pay off demands and/or beneficiary’s statements.
- Approve any final changes by signing amendments to the escrow instructions or contract.
The Lender (when applicable)
- Accepts the new loan application and other related documents from the Buyer(s) and begins the qualification process.
- Orders and reviews the property appraisal, credit report, verification of employment, verification of deposit(s), preliminary report and other related information.
- Submit the entire package to the loan underwriters for approval. When approved, loan conditions and title insurance requirements are established.
- Informs Buyer of loan approval terms, commitment expiration date and provides a good faith estimate of the closing costs.
- Deposit the new loan documents and instructions with the settlement agent for Buyer’s approval and signature.
- Reviews and approves the executed loan package and coordinates the loan funding with the escrow officer.
The Escrow Settlement Officer
- Receive the request for escrow and title services.
- Orders the preliminary report or title commitment for the subject property.
- Acts as the impartial entity in a fiduciary capacity for all documents and monies required to complete the transaction per written instructions of the principals.
- Prepare the escrow instructions and required documents in accordance with terms of the sale.
- Reviews documents received in the escrow: preliminary report or title commitment, payoff or assumption statements, new loan package and other related instruments.
- Review the conditions in the lender’s instructions including the hazard and title insurance requirements.
- Present the documents, statements, loan package, estimated closing statements and other related documents to the principal for approval and signature, and requests the balance of the buyer’s funds.
- Receive the proceeds of the loan from the lender.
- Determines when the transaction will be in the position to close and advises the parties.
- Assisted by title personnel, records the deed, deed of trust and other documents required to complete the transaction with the County Recorder and orders the title insurance policies.
- Close the transaction by preparing the final settlement statements, disbursing the proceeds to the Seller, paying off the existing encumbrances and other obligations.
- Deliver the appropriate statements, funds and remaining documents to the principals, agents and/or lenders.
At this time, the Escrow company determines the requirements and documents needed to complete the transaction and advises the escrow settlement officer.
The title company reviews and approves the signed documents, releases and the order for title insurance prior to the closing date then records the signed documents with the County Recorder’s office and prepares to issue the title insurance policies.
Information About Buying or Selling Palm Springs Area Real Estate
Buying or Selling in today’s real estate market is a challenge and a process that is easily accomplished with the help of a Real Estate professional. You will need an expert who has lived in the desert and knows the lifestyle and the unique housing market.
The market in the Greater Palm Springs Area is alive and the values are exceptional for those who are looking for an ideal investment or a vacation/retirement property. We have many choices for every need, budget and amenity list.
Is to be your primary residence? We have what it takes to get you settled into a great family home in the neighborhood of your choice.
Selling your home in the Greater Palm Springs Area? I will make the experience easy, friendly and professional. Our mission is to provide outstanding service while utilizing the best practices and Internet technology available.
If you are plan to rent your new home, we have the staff partners who will assist with any project or property management while you are away from the property.
For more information on how I can best serve your Greater Palm Springs area needs, please fill out the online contact form give us a call at 760-413-2871.
I won’t just sell you a house but I WILL help you find the home you will LOVE!
Ron is a Greater Palm Springs Area Realtor® specializing in Palm Springs vacation homes, investment properties in Palm Springs and primary single-family Palm Springs Homes for Sale. He has the long term knowledge necessary to make the buying and selling of Greater Palm Springs Area real estate a smooth enjoyable process.
WHY DOES RON JESSER LOVE PALM SPRINGS?