What to expect during escrow
Your guide to escrow success!
Congrats, you’ve made it to the finish line of the home-buying process! The buyer, seller, and any other necessary parties have come to a settlement. You’re officially in escrow – but now what?
You should know that escrow doesn’t happen overnight, this typically takes 30-60 days to complete. Be sure to unpack your pens, you’re going to have to sign A LOT of paperwork throughout this process. During this time, the neutral third party holds buyer funds and the purchase contract until an escrow agent verifies both the buyer and seller have done everything they need to do to finalize the sale.
The first few weeks are going to be designated to the seller for an inspection phase. First, it must be verified that the seller is the rightful owner and has the legal right to sell the property. Next, not only do liens need to be cleared from the property, but they need to be cleared from the individual seller as well. Without this, you can’t sell your property.
About midway through the escrow period the attention will then shift to the buyer. This is when you should select your hazard/fire insurance carrier and policy. Next, you’ll want to ask your tax advisor and/or attorney about the best way to hold title (vesting) at the time of close. Lastly, transfer your personal funds to close into an account from which you can wire or purchase a cashier check. Be sure to ask your bank about their wire process so you know how long it takes to send one.
Once all the money is in escrow, the Grant Deed is released to record at the county recorder’s office the following morning. And just like that, your escrow transaction is complete, the property has changed hands and all that is left is for the escrow officer to balance the file and send out the money appropriately. The sellers can expect to get their net proceeds same day and the buyers get the keys to a new home.
Remember, escrow is a fluid state and it can be a very stressful at times. As new information comes in, revisions are needed and situations come up that are out of your control. Your escrow officer is there to hold all of the moving pieces together. The best thing that you can do is to remain flexible and stay in communication with your escrow officer.
For more help with the escrow process, download our 5 Step Guide to Escrow Success!