WHAT IS AN ESCROW?

Essentially, an escrow is the safe-keeping of all important documents and  funds by a third party, your escrow officer, until all agreements and the sale of a home are complete.  For example, the escrow officer will keep in an account the grant deed of the home for the seller, and any initial deposit of funds and remaining certified funds for the buyer. There are numerous other administrative items the escrow officer performs or facilitates the exchange of for both parties, including any lender or broker also principal to the transaction. An escrow officer assures both parties that all instructions and conditions of the sale are followed and disburses funds or conveys title of the home only if the conditions are met.

ESCROW OFFICER’S DUTIES

A flurry of paperwork regarding title insurance, property taxes, reports and contracts can become overwhelming for seller or buyer. An escrow officer carries out the procedures associated with these documents. Your escrow officer is responsible for the following:

Ÿ    Ordering a preliminary title report from the title insurance company. The report reveals liens of public record and is the guideline the escrow officer uses to assure that the title is conveyed with only the liens and matters the buyer has agreed to accept.

Ÿ    Coordinating with buyer’s lender regarding loan documents, receiving buyer’s final down payment of funds and assisting Your escrow officer will also be in touch with the lender, who will need copies of various  instructions and documents, and will comply with any lender instructions.

Ÿ    Arranging for title insurance which insures the owner and the lender of ownership of the property.

Ÿ    Handling property tax issues such as calculating proration of taxes, and charging and crediting to accounts responsibility of such bill.

Ÿ    Preparing a closing statement, a final bill  which lists the charges and credits of an account, and shows purchase price, funds deposited or credited to accounts, payoffs on existing liens, the costs for all services and an explanation of funds you are entitled to a the close of escrow. An escrow officer will charge fees that are appropriate for producing services, including overhead expenses.

Ÿ    Keeping in close contact with you in a timely manner regarding all aspects of the escrow.

These are just a portion of the necessary steps to reach a final agreement, or closure of an escrow. At Premier Escrow, we will deal with the complex administrative process of your transaction and informing you in clear language of every step, allowing you to enjoy a home sale or purchase for what it is, an exciting life-changing event.