Why Do I Need Escrow!
Whether you are the Buyer or Seller, you want assurance that no funds or property will change hands until all of your instructions have been followed.  With the increasing complexity of business, law and tax structures, it takes a trained professional to supervise the transaction.
What Is The Escrow Process?
The escrow service company or holder prepares the escrow instructions from information supplied by the Real Estate Agent in accordance with the Real Estate contract signed by the Buyer and Seller.  These contract instructions, once signed by the principals, provide authorization by the Seller to have the escrow holder deliver to the Buyer the documents necessary for ownership when the Buyer has deposited the agreed upon purchase price and when all other instructions have been compiled with.  The instructions also provide the Buyer's authorization to deliver the purchase money to the Seller once the escrow holder has recorded the Deed and escrow has ordered a Policy of Title Insurance insuring the Buyer will receive clear title.

As A Buyer Entering Into Escrow What Must I Do?
1) If your contract calls for a NEW LOAN, it is your responsibility to arrange for this loan.  Your Real Estate Agent can be most helpful.   He or she will be knowledgeable as to the current mortgage market.   Application should be made as soon as possible.
2) FIRE INSURANCE.  Your lender will have certain insurance policy requirements.   You will need to provide escrow with your insurance agent's name and phone number so that we may make certain those requirements are met and the policy is in order in time for the closing.

3) The law requires your closing funds be deposited into escrow in the form of a cahier's check drawn on a CALIFORNIA BANK.  Please arrange with your BANK or Savings & Loan to draw on a California Bank the checks you'll need.  Contact your Escrow Officer for help in determining what funds will be required.
4) STAY IN CONTACT with your lender and Real Estate Agent regarding the progress of your loan.
What Happens At The Closing?
After the Buyer has signed loan documents, the documents are returned to the lender for funding.  When all conditions of the loan have been met, the lender will fund the day prior to recording.  When all conditions of the instructions have been met, the escrow holder "closes the escrow" by recording the documents.   After recording, escrow will disburse funds according to the instructions, including loan payoffs, real estate commissions, recording fees, etc., deliver the proceeds to the Seller and deliver title to the Buyer.
When Will Escrow Need My Closing Funds?
After escrow has received loan documents from the lender, they will advice you of the final amount required to close escrow. Normally you will buy a cashier check payable to Escrow company. Escrow will need all monies two days prior to closing.

After Closing Now What?
As the Buyer, you should make arrangements for possession of the property, keys, garage door openers, etc., through your Real Estate Agent.  Any recorded document to which you are entitled will be sent to you from the County Recorder.

What If The Transaction Isn't Completed, What Happens To My Deposit?
When a transaction fails to close, law requires a cancellation agreement be obtained in writing from all parties.  This may take a reasonable amount of time.  The amount of the cancellation charge will depend upon at what stage the file is cancelled.

As A Seller Entering Into Escrow What Must I Do?

1) Order termite inspection as soon as possible.   Waiting until the Buyer's loan is approved may delay the closing.
2) Advice escrow what taxes have been paid.
3) Keep payments current on all loans during the escrow period.
4) Provide escrow wit your forwarding address prior to the close of escrow.
What Escrow Fee & Closing Costs Are Required?
An escrow fee is charged each party, based upon the size and complexity of the transaction.  Other fees involved include: the title insurance premium, lender's fees, recordation fees, real estate commission and documentary transfer tax.
After Closing Now What?
As the Seller, you should make arrangements to transfer the property to the new owner, complete move-out within the contracted period, clean up your old property, deliver keys, garage door openers, etc., through your Real Estate Agent.