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San Diego Condos / San Diego Homes

Escrow and Title Fees 

Who Pays For What?

Escrow
To finalize the sale of the home a neutral, third party (the escrow holder, a.k.a. escrow agent) is engaged to assure the transaction will close properly and on time. The escrow holder insures that all terms and conditions of the seller's and buyer's agreement are met prior to the sale being finalized, including receiving funds and documents, completing required forms, and obtaining the release documents for any loans or liens that have been paid off with the transaction, assuring you clear title to your property before the purchase price is fully paid.

The documentation the escrow holder may be collecting includes:

• Loan documents
• Tax statements
• Fire and other insurance policies
• Title insurance policies
• Terms of sale and any seller-assisted financing
• Requests for payment for various services to be paid out of escrow funds

Upon completion of all instructions of the escrow, closing can take place. All outstanding payments and fees are collected and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the property is then transferred to the seller and appropriate title insurance is issued as outlined in the escrow instructions.

At the close of escrow, payment of funds shall be made in an acceptable form to the escrow. As your real estate agent, I'll inform you of the acceptable form.(wire transfer)

The Escrow Holder Will:		The Escrow Holder Won't:
Prepare escrow instructions Request title search Comply with lender's requirements as specified in the escrow agreement Receive funds from the buyer Prorate insurance, tax, interest and other payments according to instructions Record deeds and other documents as instructed Request title insurance policy Close escrow when all instructions of seller and buyer have been met Disburse funds and finalize instructions     Phase 1 Broker/Agents sends Escrow Holder a legible copy of fully executed purchase agreement and joint escrow instructions Escrow holder assigns an escrow # and prepares supplemental escrow instructions and pertinent documents; mail or deliver to all parties for signatures. Phase 2 Order Title Search Process Financing Receive & review the preliminary title report Request beneficiary statement(s) Lender will require Buyer's loan application and a certified copy of all escrow instructions Payoffs/Demand(s), & request clarification of other liens (if any) Receive and review demands Receive & review beneficiary statement(s). Review terms of transfer & current payment status. Is lenders approval required prior to recording? Do these figures compare with the escrow instructions? Upon receipt of loan approval, compare the terms with the escrow instructions Phase 3 Review file to determine that all instructions have been followed. (All required documents signed, terminate inspections, contingencies released, fire insurance ordered, note(s) and deeds of trust executed, bill of sale, etc) Prepare pre-settlement statement and request the balance of funds required from Buyer and/or Seller and obtain final signature on any docuemnts if required. Phase 4 Return loan documents to lender Obtain funds requested in Phase 3 Request lender's loan funds Authorize recoding with the title company Forward documents to title company Phase 5 Close file by preparing Buyer's and Seller's closing statements and disburse funds. Complete closing by forwarding final documents to all interested parties (Buyer, Seller, Lender, Agent)		Give advice - the escrow holder must maintain neutral, third-party status Offer opinions about tax implications