Friday, March 16, 2007

Escrow...How Does She Do It?

I was asked by a good client many years ago, "what is it that my escrow officer does for me and my clients?" She said, "I open the escrow, you pick up a check, we get a pre, my clients sign, and you bring me a commission." Well she was unaware that there is a long list of things the escrow team in my branch does on the average resale transaction. After you review this blog, you may wish to deliver flowers and wine to your escrow officer at your next closing! It takes a special person to be an Escrow Officer!

Let's visit what the escrow officers in my branch do for you and your clients.

Escrow Procedures on a Typical Resale Transaction

a. Opens escrow and orders preliminary report from title department
b. Receipts in initial buyers deposit to escrow and sends copies of receipt for deposit to both agents and new lender/loan agent
c. Sends agents or clients "So you're buying" and So you're selling" brochures
d. Reviews all title issues upon receipt of preliminary report
e. Arranges to have preliminary report sent to sellers and buyers agents and loan agent
f. Sends statements of identity to seller / buyer as needed
g. Orders payoff demands on all existing deeds of trust and liens as needed
h. Clears all title issues as needed - Examples Affidavit - Death of Joint Tenant Interspousal
i. Transfer Deed and Instructions from Spouse
j. Orders Confirming Sale Independent Administration Act
k. Releases of Internal Revenue Service Liens
l. Releases of State of California / Franchise Tax Board Liens
m. Releases of Abstracts of JudgmentReleases of Child Support / Alimony Support Judgments
through the District Attorneys Office or through Attorneys for Respondent / Defendant
n.Releases of Postponed Property Taxes
o. Releases of Delinquent Property Taxes
p. Receipts into escrow all inspections / billings affecting property - Examples
Termite Inspection / Termite CertificationRoof Inspection / Roof CertificationStructural /
Physical Inspection / Pool Inspection
q. Arranges for home warranty billing / contract to be deposited to escrow
r. Assists loan broker / lender with obtaining all information needed from escrow holder prior to drawing of loan documentation
s. Communicates with fire / hazard insurance agent and arranges to have insurance coverage and billing deposited into escrow
t. Communicates with listing / selling agents with progress reports as needed
u. Arranges for pick up / federal express of loan documents
v. Verifies final terms with listing / selling agents
w. Draws sellers and buyers escrow instructions and closing documentation
x. Makes sure we have complied with all Cal-Firpta and Firpta requirements
y. Sets up appointments for signature of sellers and buyers escrow instructions with agents]
z. Signs off sellers and buyers

Sends request for loan funds documentation to new lender (s)
2. Prepares recording voucher for County recorders office
3. Prepares request for Owners and Lenders policies of title insurance
4. Sends documents to record to County recorders office
5. Arranges for wiring / pickup of lenders and buyers funds
6. Advises both listing and selling agents that loan has funded and has been released for recording
7. Upon meeting all requirements and receipt of all funds, releases file to record with County recorder's office
8. Upon confirmation of recording disburses all funds in file to proper parties
9. Advises sellers and buyers agents we have closed their transaction
10. Prepares final HUD-1 closing statement
11. Delivers broker, buyers and sellers checks as per instructions
12. Sends via federal express all loan payoffs
13. Sends closing letters to all parties in connection with the escrow
14. Prepares 1099's for Internal Revenue Service
15. Completes internal documentation in file
16. Forwards policies of title insurance to proper parties
17. Calendars / monitors any and all "funds held" items
18. Upon release of all "funds held" and completion of all internal functions the escrow file will be sent to storage for safe keeping

When you open your next escrow, give us a try, and let us show you why your business,
should be our business! Think First, Think First American!

1 comment:

kenzie jones said...

Very well written article.You did a good job.I read your article. Yes you are right.Escrow have the bunch of work and responsibilities on their shoulders.Thanks for the article.
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