Step by step Escrow Process

There are many steps of an Escrow. Below are some of the basic steps:

  • Preparing the instructions of the Escrow. The sub steps are:
  • Purchase price and terms
  • Agreement
  • The content and the look of the buyer’s title. This is called ‘Yesting’
  • The content of the records basis which the buyer will acquire the title
  • The Inspection records to be available
  • Adjustments related to proration (related to taxes and insurances)
  • Date on which the buyer is to possess the property
  • All documents need to be duly signed by all the concerned participating parties, delivered into the Escrow and to be recorded
  • All disbursements to be made as per the laid down rules.  All costs and charges need to be paid as also the party that is responsible to  pay
  • The closing date of the transaction
  • Order the Title Search
  • Request for the Demands Statements and/ or the Beneficiary Statement. These are for the lenders, if any
  • A demand or paying off the existing loan of the seller
  • A Beneficiary Statement
  • Take the Pest Control Report and other Reports
  • Take the new loan Instructions and the new loan Documents
  • Take the Fire Insurance Policies and the complete set of Documents. The Escrow holder:
  • Collects and deposits any fire insurance policy and transfers the insurance
  • Takes care of the Prorations
  • Handles all the accounting tasks
  • Lets the participants know that the Escrow is ready to be executed into the next level
  • Request for the closing Funds
  • Prepare the Audit File for Closing
  • Maintains all related documents and funds
  • Ensures that all the participants have abided by all the Escrow rules
  • Order for the Recording
  • Close the Escrow
  • Ready the settlement statements
  • Taking care of all the funds
  • Delivering the right documents to the right stakeholder/s.
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