What is Escrow?
Escrow is a third-party company. According to the agreement reached by the buyer and the seller, Escrow supports the completion of the transaction, and is a neutral third party, ensuring that both the buyer and the seller perform what they should do. After all the conditions are met, Escrow will let the seller get the money and the buyer get the house.
When the buyer submits the Residential Purchase Agreement (RPA), write down the number of days required to close escrow, for example: it could be 7 days, 14 days, 21 days, or 30 days. Of course, this part needs to be discussed with the real estate consultant and loan officer first. If there is not enough time to complete the Escrow, you will need to negotiate with the seller during the transaction.
Let’s split the escrow process into several parts by the number of days
Escrow 1-3 days process (down payment + proceeding)
Mainly, the buyer makes the payment for the initial deposit. And the buyer should start to arrange inspection and loan applications.
let’s talk about payment first.
1. EMD remittance
Usually the EMD (earnest money deposit) needs to be remitted to Escrow Company in the first three days, so the buyer must deposit the money within three days. The steps of remittance are very important and need to be very careful. The best way is to call the Escrow company directly to confirm again and again, and you can’t make a transfer simply based on the information on the email.
Be sure to call Escrow to double check.
In addition to submitting the EMD, you must also start the loan application and arrange a home inspection.
Also, the buyer needs to complete the Vesting Form, and buy home insurance, which is not easy to buy now, so you must get the quotes from the insurance company as soon as possible. And Finalize the City Change of Ownership Form (PCOR)
Escrow 4-16 Days Process
Mainly to review the relevant documents of the house and conduct Home inspections.
Usually within five days, the seller needs to provide some documents.
For example: TDS, SPQ, QS/FIRTA, NHD Report, 1-6 pages Environmental Doc, and FHDS .
In addition, the buyer will receive the Home Inspection Report provided by the house inspection company. If the report has some suggestions, the buyer can consider whether there is a need for additional inspections. For example: Termite inspection, A/C inspection
Also, during this period of time, the buyer will also need to read the Title Report.
The above is the basic process of Escrow Part 1. You can check the link for Escrow Part 2.
If you have any questions or demand about selling or purchasing homes, please contact me.