Oro Valley Real Estate - Escrow and Title
Discover the differences between Escrow and Title and how they participate in the Home Selling and Buying Process.
WHAT DOES ESCROW DO?
Escrow is your main point of contact-they are the hub of the transaction bringing together agents, sellers, buyers, lenders, title and all the vendors
When your clients place the escrow company in the contract, you will open escrow by submitting your contract and earnest money to the escrow office named, and they will then open the order with Title
The Escrow Officer has the responsibility to remain as neutral as possible in a real estate transaction
Escrow should keep you informed as to what is happening in your transaction
Escrow handles payoffs of liens, taxes and insurance, prepare some documents, obtain signatures, coordinate services, disburse funds, prepare escrow instructions (when needed) and provide technical assistance
WHAT DOES TITLE DO?
Title is responsible for researching the public record, finding out what affects the properties, and in many ways maintaining the public records
Title issues a Title Commitment to buyers and lenders setting forth what needs to be taken care (Requirements) and what matters will remain against the title (Exceptions).
Buyers have 5 days to review and disapprove of any matters.
Title works with escrow and assist with any title matters on the Commitment needing to be addressed
Upon completion of the transaction (Recording) Title will issue a Title Policy to the buyer and or lender if applicable.
LIFE OF AN ESCROW
Opening The Escrow:
With Purchase Contract, Earnest money check, New lender information, Existing loan payoff, Copy of listing.
Processing The Escrow:
Deposit earnest money check, Order Preliminary Title Report, Requests payoff, Hoa information, etc.
Preliminary Title Report is sent to the Escrow Office, Lender, Agents, Sellers & Buyers.
Escrow Closing Preparation:
Escrow follow-ups on receipt of the following if needed:
Termite Report - Buyer’s Hazard Insurance - Home Protection Plan - New Loan Package - Payoff Information - Repair Bills - Warranties.
Time for closing:
Loan documents are received and Escrow Officer advises agents of funds that are needed for closing.
Closing appointment times are set for Seller and Buyer with Escrow Office.
Advise all parties executing document to bring a valid government issues picture, i.e. license, passport, etc.
Advise Buyer to bring in a cashier’s check or wired funds for closing.
Advise Seller that they shall supply escrow with their social security number.
Execution Of Documents:
Buyer & Seller meet with Escrow Office and executes all documents. Escrow returns loan packages to lender for funding.
After escrow received all funds needed, original documents are sent to the Recording Desk for recordation.
Once documents are recorded, escrow notifies Agents.
Disbursement Of Funds:
All Disbursements are made in accordance with the Settlement Statement