The life of an escrow is perhaps the number one reason to use experienced Realtors, Loan Officers, and Escrow Officers. It can be a very complex process and everyone needs to do their job to get things done on time.

The Escrow Officer is pretty much the quarterback of the transaction. They coordinate most of the activities, ensuring each step is completed. A good Escrow Officer will keep the transaction on track. It is not uncommon for an experienced Realtor to refuse to work with an Escrow Officer who has a bad track record.

The Loan Officer can make or break the transaction. Two Loan Officers may broker a loan out to the same investor, but the good Loan Officer will ensure that all conditions are met, the appraisal is taken care of, and that it gets through underwriting smoothly. While a Lender's costs and rates are important, just as important is their reputation for getting things done on time.

The Realtor's job is to make sure everything is done. Where the Escrow Officer keeps tabs on things, it's the Realtor who usually actually completes the tasks. Fortunately, the Seller and Buyer usually want the transaction to close on time, so both Realtors tend to work for a common goal.

Once the contract is negotiated and signed, the Buyer and Seller really have little to do. The Buyer must expeditiously get the Lender all required items, but aside from signing the documents, has little else to do. The Seller has even less to do, as they aren't even working with a Lender.

Below are the tasks for each party.

The Buyer(s)

• Tenders a written offer to purchase (or accepts the Seller's counter-offer) accompanied by a good faith deposit amount.
• Approves and signs the escrow instructions and other related instruments required to complete the transaction.
• Approves the preliminary report and any property, disclosure or inspection report called by the purchase and sale agreement. (Deposit Receipt)
• Approves and signs new loan documents and fulfills any remaining conditions contained in the contract, lender's instructions and/or the escrow instructions.
• Deposits funds necessary to close the escrow. Approves any changes by signing amendments in the escrow instructions.

  The Lender (when applicable)

• Accepts the new loan application and other related documents from the Buyer(s) and begins the qualification process.
• Orders and reviews the property appraisal, credit report, verification of employment, verification of deposit(s), preliminary report and other related information.
• Submits the entire package to the loan committee and/or underwriters for approval. When approved, loan conditions and title insurance requirements are established.
• Informs Buyer(s) of loan approval terms, commitment expiration date and provides a good faith estimate of the closing costs.
• Deposits the new loan documents and instructions with the escrow holder for Buyer's approval and signature.
• Reviews and approves the executed loan package and coordinates the loan funding with the escrow officer.

  The Escrow Officer

• Receives an order for escrow and title services.
• Orders the preliminary report and examination on the subject property from Chicago Title.
• Acts as the impartial "stakeholder" or depository, in a fiduciary capacity, for all documents and monies required to complete the transaction per written instructions of the principals.
• Prepares the escrow instructions and required documents in accordance with terms of the sale.
• With the authorization from the real estate agent or principal, orders demands on existing deeds of trust and liens or judgments, if any. For assumption or subject to loan, orders the beneficiary's statement or formal assumption package.
• Reviews documents received in the escrow: preliminary report, payoff or assumption statements, new loan package and other related instruments. Reviews the conditions in the lender's instructions including the hazard and title insurance requirements.
• Presents the documents, statements, loan package(s), estimated closing statements and other related documents to the principal(s) for approval and signature, and requests the balance of the buyer's funds.
• Reviews the proceeds of the loan(s) from the lender(s).
• Determines when the transaction will be in the position to close and advises the parties.
• Assisted by title personnel, records the deed, deed of trust and other documents required to complete the transaction with the County Recorder and orders the title insurance policies.
• Closes the escrow by preparing the final settlement statements, disbursing the proceeds to the Seller, paying off the existing encumbrances and other obligations. Delivers the appropriate statements, funds and remaining documents to the principals, agents and/or lenders.

  The Seller(s)

• Accepts Buyer's Offer to Purchase and initial good faith deposit to open escrow.
• Submits documents and information to escrow holder, such as: addresses of lien holders, tax receipts, equipment warranties, home warranty contracts, any leases and/or rental agreements.
• Approves and signs the escrow instructions, grant deed and other related documents required to complete the transaction.
• Orders inspections, receives clearances and approves final reports and/or repairs to the property as required by the terms of the purchase and sale agreement (Deposit Receipt).
• Fulfills any remaining conditions specified in the contract and/or escrow instructions; approves the pay off demands and/or beneficiary's statements.
• Approves any final changes by signing amendments to the escrow instructions or contract.

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