If you are buying your first house, the escrow process may confuse you. To ensure you end up with a great deal, it is important to understand the process. An escrow is essentially a safety net for both the buyer and the seller throughout the entire real estate transaction.
A neutral third party, who controls the escrow process, can either be an escrow officer from a specific company, or a representative from a title company. It is opened as soon as both the buyer and seller sign a purchase agreement on a property and the buyer puts down a deposit into the escrow account.
After escrow is opened, the contract will dictate how the entire process will be handled and will explain what is needed to complete the transaction. A preliminary title search is then ordered by the buyer to find out if there are any easements, liens, or claims that are made against the property that need to be resolved before the title of the property can be transferred.
There are many contingencies that need to be met during escrow, such as obtaining homeowners insurance, home inspections, and repairs. Each time one of the contingencies is met, both the buyer and the seller have to sign off on a contingency release, and a copy is given to both parties as well as the officer. Once all of the contingencies are all met, the buyer pays the seller, the seller transfers the deed, and the escrow closes.
For all of your escrow needs in Southern California, contact Eastland Escrows in Covina. We can help you throughout the entire process, and help you move in to the home of your dreams.