Escrow

Happy San Ramon Clients

Escrow for Buyers

“Congrats! You got the home!” One of my favorite things to say when representing a home buyer.

However, just because an offer is accepted doesn’t mean it’s time to pack. There are a number of other things I’ll do to make sure the home is as it appears, such as coordinating inspections and reviewing disclosures. The home needs to appraise and the loan needs final approval.  Some homes are in a homeowner’s association, and we will want to review their rules and financials.

I have done this many times, so I will make the process as smooth as possible for you.

  1. The first step to escrow process for a home buyer is to send a cashier’s check or wire with the earnest money deposit to the escrow/title company.  The purchase is subject to  “contingencies” such as inspection findings, getting a loan approved and potentially other conditions. If a buyer is not satisfied with the results of the inspections or can’t get a loan approval as another example, they can cancel the contract and get their deposit back.
  2. If repairs are needed, home buyers can do what’s called a Request for Repair Addendum, and ask the seller to make the repairs or offer a credit. This may end up being a new negotiation which I will guide you through.
  3. If a home buyer removes’ all the contingencies, the deposit is then at risk.
  4. The remainder of the the down payment is delivered to the title company by the home buyers, and the loan company will send the loan funds to the title company as well. Once all the needed funds are in escrow, the title company will record the sale and you are officially the new owner.

Easy said than done, but this is once example of the process.

 

Happy Walnut Creek Clients

Escrow for Sellers

We have an offer!  This is one of a seller’s favorite things to hear.

Coming to terms with the buyer on an accepted offer is good news as well. From there, its disclosures, inspections, an appraisal, occasional negotiations of repairs, contingency removals and close of escrow. Sound easy? Well, I try to make it that way.

There are variables with every escrow. The buyer, the buyer’s agent, inspectors, the loan company and sometimes a know-it-all family member or friend.  But I have been through this many times, so if one of those parties gets us off track, odds are, I’ll get us back on track.

  1. The first step to escrow process for a home seller is to make sure the buyer’s earnest money deposit is placed in escrow.  The purchase is subject to  “contingencies” such as inspection findings, getting a loan approved and potentially other conditions. If a buyer is not satisfied with the results of the inspections or can’t get a loan approval as another example, they can cancel the contract and get their deposit back.
  2. If repairs are needed, home buyers can do what’s called a Request for Repair Addendum, and ask the home seller to make the repairs or offer a credit. This may end up being a new negotiation which I will guide you through.  Home sellers are not obligated to make any repairs, unless spelled out in the offer. The standard language of the contract states that home buyers are buying the home in it’s as-is, present condition. However, there are certain repairs that are customarily done by home sellers such as section one (active/living termites or fungus), health and safety items, and roof work in some cases.  I will guide you through this process.
  3. When the home buyer removes’ all their contingencies, the deposit is then at risk and you are usually home free, no pun intended.
  4. Once the remainder of the the down payment is delivered or sent to the title company by the home buyers, and the loan company sends the loan funds to the title company, the title company will record the sale.
  5. All taxes, HOA payments and loan payments will be pro rated. The title company is similar to a bank in some regard.

For both home buyers and homes sellers, we hold onto escrow files for at least three years.  If you need copies of something from your file, just let me know.  Occasionally, accountants and CPA’s will want escrow documents for tax reasons.  And occasionally, home buyers or home sellers misplace their escrow file after the move. This is not a problem and I’m happy to help.