Escrow in Brief
In California there are four principals involved in any real estate transaction: the buyer, seller, lender and borrower. Our role at Prominent Escrow is to assure all parties that the transaction will be completed in a manner that fulfills all the legal obligations necessary, and do so in a timely manner.
Once the seller and buyer have signed a real estate sales purchase agreement with the real estate professional, the documents are sent to us, and your escrow account will be opened. The document package normally will include any receipt of deposit. This document, with the deposit, and any additional instructions will serve as a guideline in completing the escrow process.
When escrow opens a number will be assigned to the escrow account. At this time Prominent Escrow will collect all contracts, documents, instructions, deposits or additional funds. For the sake of a timely, professional and legal escrow process any, and all, principals need to be responsive to any additional requests from us.
It will be Prominent Escrows responsibility to safeguard all funds and documents, and not to disperse any funds, or convey any title until all instructions and legal provisions have been met.
A preliminary title search is ordered to be sure there are no claims against the title. The title report will summarize the condition of the title that will include any liens, easements, encumbrances or claims against the property. The seller will normally be responsible for resolving any claim against the property.
The contract or escrow instructions may contain “contingencies.” These may include the purchase of home and/or flood insurance, any home inspection, additional financing, any repairs to be made or any other tasks or instructions. All of these must be completed and “signed off” before escrow is finalized. All parties will receive a signed copy of the completion of each contingency.
When all contingencies are met, the loan is funded, and all final escrow instructions are complete the final disbursement sheet will also be completed. Final title can now be transferred and escrow closed, and the deal is sealed when the escrow office records a new deed in the buyer’s name.