The Escrow Process

As your escrow department we would like to have every escrow transaction close as quickly and as easily as possible.  Here are a few things to keep in mind when opening escrow and during the processing of your escrow.

PURCHASE CONTRACT:

Upon opening of escrow, please be sure your Purchase Contract is complete.  Have all boxes checked, all spaces filled in and fully signed and initialed by the buyer, seller and agents.

GOOD FAITH DEPOSIT:

All good faith estimates must be deposited upon opening of escrow.  It is our fiduciary duty to collect all funds for deposit.  It is in the best interest of the seller to have the deposit in escrow in the event of cancellation.

ESCROW INSTRUCTIONS:

One to three page escrow instructions will be issued depending on your purchase contract.  Most CAR contracts incorporate your escrow instructions.

ESCROW PACKAGE:

Return the Buyer and Seller opening escrow package fully completed and signed.  Unsigned or incomplete documents will only delay the escrow process.

ADVICE:

Escrow does NOT give advice.  We can only guide you through a difficult transaction.  Your buyer or seller will be the first to point fingers, "Escrow advised us."  Only an attorney can give advice.

FINAL HUD-1:

Escrow is NOT allowed to make corrections or alterations to a Final - HUD-1 after escrow is closed.  Once funds have been disbursed, escrow is closed.   Escrow must disclose all figures to buyer, seller and lender prior to close of escrow.

DOCUMENTS:

Escrow cannot draw any documents (deed, trust deed, note, etc.) without an open escrow.  Without an open escrow, we would be practicing law. 
EXCEPTION: If an escrow has closed and escrow has made a clerical error, we will make every attempt to correct the issue.

ACCOMMODATION RECORDING:

We cannot record any documents without an open escrow.  The person requesting the recording must take the document directly to the County Recorders Office.

POWER OF ATTORNEY:

Escrow will not draw a Power of Attorney.  Buyer/Seller should consult with an attorney regarding the drawing of this document due to the legal contents of a Power of Attorney.

ORDERING REPORTS:

Escrow does not order the following reports:  Home Protection, Termite, LGS/Hazard Disclosures, or Roof Certification.  In the event escrow is cancelled, the company issuing the reports looks to escrow for payment since it was escrow that ordered the report.

DISCLOSING INFORMATION:

As an "un-bias" escrow agent it is our responsibility to disclose any adverse or conflicting information to all parties to the escrow.  Please do not share negative information with escrow.  We are required to disclose these conversations to all parties. (Death, murder, foundation issues, etc.)

ESCROW CONTINGENCIES:

All contingencies must be waived/deleted in writing.  We cannot accept "verbal" waivers.

BROKER/CLOSING COSTS CREDITS:

Any type of monetary credit to the buyer must be disclosed to the lender.  The lender must meet certain guidelines when choosing a loan program for the buyer.  In some cases, credits are NOT allowable to the buyer.

CLOSING FUNDS:

It is best to have buyer's closing funds "Wired" into escrow.  Any check deposited will be held for 2 (two) business days.  Be prepared for closing delays in the event closing funds are deposited via check.

DOUBLE ESCROWS:

We will not open "double escrows".  Do to recording issues the liability involved out-weigh any fees made to close such an escrow.

DEPOSITED FUNDS:

Funds on deposit CANNOT be disbursed without instructions signed by all principals.  Deposited funds become the property of both buyer and seller.

THIRD PARTY DEPOSITS:

Any party depositing funds in behalf of a buyer or seller (not a party to the escrow) becomes a third party depositor.  Escrow will require a written authorization signed by all parties involved with this deposit.

CHANGES DURING ESCROW:

All instructions, changes, corrections, additions, deletions to the original escrow instructions must be in writing.  Escrow is not allowed to make changes to the original instructions verbally.  Escrow can never assume that the principals agree to the changes that occur during the course of the escrow.

HOLDING ESCROW:

We make every attempt NOT to hold any funds in escrow after the close.  In the event a holding escrow is requested, a fee will be charged and a Holding Escrow will be opened.

"Close Escrow"

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