What is Escrow?
In a nutshell, escrow begins when
your earnest money deposit and purchase
offer is accepted by the seller. Escrow
ends when you become the official
new owner, registered in the county
records.
Title Company and Escrow
Holder: In our area, typically
the buyer selects the title company
and escrow holder, because they are
paying for the costs. The title company
will research the complete recorded
history of the property, to make sure
that the title is free and clear of
all encumbrances by the date of closing
and that all new encumbrances are
properly added to the title. You will
receive a copy of the “preliminary
report”, which we can explain
to you.
Contingencies: Most
purchase agreements provide the buyer
with specific amounts of time to inspect
the property, review the preliminary
title report and all disclosure documents
and obtain financing and insurance
before they must actually complete
their purchase of the property. At
the successful conclusion of each
of these milestones, the buyer will
remove that contingency of their purchase
and move one step closer to the close.
Or, the buyer may use information
they have learned to request a renegotiation
of the terms of the contract (often
the price). This is when an objective,
experienced listing agent can really
make a difference by helping you make
an informed decision on how to respond
to the buyer.
Inspections: The
buyer has the right to have a wide
variety of property inspections to
determine the property’s condition
and the cost of any impending repairs
or upgrades. Inspections may include
roof, termite/pest, chimney/fireplace,
property boundary survey, well, septic,
pool/spa, arborist or mold. You are
entitled to a copy of any of their
inspection reports.
Appraisal and Loan Approval:
We recommend accepting offers from
buyers who have a lender’s pre-approval
letter, which is stronger than a pre-qualification
letter. Later, the lender will send
an appraiser out to the property,
to ensure the property is worth the
sales price.
Time to Start Packing:
We can recommend when it is time for
you to start packing, based on our
vast experience with transactions
similar to yours. Too soon, and you
risk having your house in upheaval
right when a buyers’ offer falls
apart or when we need to begin showing
your home to prospective buyers again.
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