Happy Wednesday! This week we are going to explain the escrow process and what to expect during that process. The escrow process varies from state to state, in Arizona, title and escrow are combined into one office. If you have any questions regarding your real estate needs feel free to reach us at 602-354-5404 or by email at [email protected]
What Is An Escrow?
According to Merriam-Webster, the word Escrow means “a deed, a bond, money, or a piece of property held in trust by a third party to be turned over to the grantee only upon fulfillment of a condition.” Once a Purchase Contract is executed, Escrow is opened and then becomes the depository for all documents pertaining to the transaction, funds, and instructions.
How Is Escrow Opened?
Once the Purchase Contract is accepted, the buyer will need to deposit his or her earnest money. Escrow will also need to have the executed contract and related documents. The buyer and seller will need to complete an “opening package”, the opening package will be used to correctly identify all parties involved in the transaction.
What Do Escrow Officers Do?
Here are a few tasks performed by escrow officers:
1. Review the Purchase Contract
2. Obtain Title Commitment
3. Communicate with all parties with weekly updates
4. Meet the Lender Requirements
5. Obtain seller payoff information for loans on the property
6. Conduct buyer signing of loan documents
7. Obtain seller signature on deed and additional documents
8. Recording of all documents
9. Securing buyer’s funds and distributing them accordingly
Typically, the signing appointment will be scheduled within the last couple days before close of escrow. Before you are scheduled for signing, be sure that all the lender’s requirements have been met. In order to sign you will need to bring your picture ID with you. (Current Driver’s License, Passport or Military I.D.)
When Do I Get My Keys?
One of the most common questions that we hear from buyers is “When Do I Get The Keys?”. In Arizona, very rarely do you get the keys at signing. Your REALTOR will coordinate the keys being left at the property in a lock box or delivered to their office.
Thank you for checking out our blog post this week! Be sure to check back every Wednesday for a new post! Again, if you have any real estate related questions feel free to reach us at 602-354-5404 or by email at [email protected]