Key Steps in the Escrow Process

1. Opening Escrow

Once the offer is accepted:

• The buyer’s agent submits the purchase agreement to the escrow company.
• The buyer deposits the earnest money into the escrow account (typically within 3 business days).

Pro Tip: Use the WE ARE REALTY system to track the submission of documents and monitor escrow deadlines.

2. Reviewing the Purchase Agreement

The escrow holder reviews the purchase agreement to ensure all terms and conditions are documented, including:

• Purchase price.
• Contingency periods (e.g., inspection, appraisal, financing).
• Closing date.

3. Title Search and Insurance

• The escrow company or title company conducts a title search to ensure the property is free of liens or claims.
• Title Insurance is issued to protect the buyer and lender from future title disputes.

Pro Tip: Review the preliminary title report with your client to identify any potential issues.

4. Satisfying Contingencies

During escrow, the buyer has the opportunity to verify the property meets their expectations. Common contingencies include:

• Property Inspections: Assessing the physical condition of the property.
• Appraisal: Ensuring the property’s value aligns with the purchase price.
• Financing: Securing final loan approval.

Agent’s Role:

• Coordinate inspections and appraisals.
• Address any issues raised during the contingency period.
• Monitor deadlines to ensure contingencies are removed on time.

5. Finalizing Financing

If the buyer is using a loan:

• The lender works with the escrow company to ensure all loan conditions are met.
• Loan documents are sent to the escrow holder for signing.

Pro Tip: Ensure your client provides all required documentation to the lender promptly to avoid delays.

6. Preparing for Closing

• The escrow holder prepares a closing statement outlining all fees, costs, and prorated expenses.
• The buyer performs a final walkthrough to confirm the property’s condition.
• The buyer and seller sign closing documents.

Pro Tip: Review the closing statement with your client to ensure they understand all costs and payments.

7. Closing Escrow

Once all conditions are met:

• The buyer transfers the remaining funds to the escrow account.
• The escrow holder releases funds to the seller.
• The deed is recorded with the local county to officially transfer ownership.

Congratulations! The property now belongs to your client.