What is Escrow?

The escrow process is an important final step in many real estate transactions. But what is escrow?

 A house in the escrow process

Escrow is when two parties deposit funds and documents to an impartial third party. These funds and documents set the terms and conditions for the transfer of property ownership. The escrow holder delivers the funds and documents upon completion of the terms of the escrow instruction.

The escrow process is mainly carried out by the escrow holder and real estate agents. Documents are “in escrow” when the parties deliver documents and money to the impartial escrow holder. We may also say the parties have “opened an escrow”.The escrow holder keeps the documents and funds for further delivery until the parties meet certain conditions. Each of the principals of the escrow (Seller, Buyer, Lender) will give the escrow holder written instructions setting out the conditions for further delivery.

The purpose of an escrow.

An escrow is commonly used to enable the parties in a real estate transaction to deal with each other with less risk. The escrow holder acts as:

  • Custodian for funds and documents.
  • A clearing house for payment of all demands.
  • An agency to perform the clerical details for settlement of the accounts between the parties.
A typical escrow transaction.

The escrow process begins with the Realtor® opening the order for title work. The Realtor® also provides the Purchase Agreement and all executed documentation to escrow. Once received, your escrow holder will prepare a preliminary report. Upon receipt of the preliminary report, an analysis determines the necessary action and documents required to complete the transaction:

  • Demands for satisfaction of liens not acceptable to Buyer and/or Lender.
  • Documents for recording.
  • Instructions and requirements of the new Lender.

In most areas, the information gathered from an escrow prepares Buyer and Seller instructions for signature. The escrow is “in perfection” when it meets all the title and financial requirements and the instructions from all parties are fully complied with. Once the financial settlement takes place, the escrow holder records the documents and issues the title insurance policies.

 

A real estate agent can make better sense of the escrow process for you. Linda Archie has the professional expertise to make your home buying or selling experience stress-free and fun! Learn more about Linda Archie and her real estate team or contact her.

Communicating With Your Real Estate Agent

It is important for you and your real estate agent to work together when selling and marketing your home.  Marketing your home for sale

In order to best serve you, your agent will want to learn more about your plans and housing priorities.  Discussing the points listed below will help your agent understand your goals and help you build a strong working relationship. Marketing your home is effective and easy when you have considered what makes your home special. Your agent can better tailor the home selling experience to meet your needs when he or she knows more about what your priorities are. Consider the points below, written by real estate agent Linda Archie, to help your real estate agent help you.

Discuss the general process and marketing your home:

• How we will work together in the marketing and sale of your property.
• The objectives you want to achieve from the sale of your house.
• The support you expect to receive from me.
• Tailoring the home selling process to fit the characteristics of your property.
• How we will communicate throughout the transaction.

Each home has special features that may interest buyers. Telling me more about what makes your home or neighborhood special helps me find selling points for different buyers.

Tell me more about your home:

• What do you feel are the most appealing features of this home?
• What features does this home have that differentiate it from other similar homes?
• Can we make any changes or enhancements to make your home as salable as possible?
• What do you regard as the most attractive features of the surrounding neighborhood?
• Do you have any special terms or conditions regarding the sale of your home I should be aware of (e.g., items of personal property to be excluded, etc.)?
• Are you aware of any problems or concerns regarding the home or the neighborhood that will need to be disclosed to prospective buyers?

Being open and frank with your real estate agent can be the difference between a home that sells quickly and a home that sits on the market. It helps to find the right real estate agent for your location and your needs. Linda Archie has immense professional experience and knows the Thousand Oaks/Ventura County area inside and out. Learn more about her team or contact her to begin the process of selling your home.

When you are considering a Realtor® ask these 3 questions

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These 5 Quick Fixes Will Help Your Home Sell Faster

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