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ESCROW OPENING CHECKLIST

ESCROW OPENING CHECKLIST AND IMPORTANT INFORMATION TO READ BEFORE OPENING ESCROW

WHAT ESCROW NEEDS FROM THE SELLER

  1. Legal Description of Property

  2. Document: Provide your Grant Deed or a copy of your title policy (these will be returned to you after escrow closes).

  3. Lender Information: Details: Name, address, and loan number for each lender to whom you are making payments. Include a payment coupon showing balances, loan numbers, etc., for all loans against the property.

  4. Loan Details: Information: Approximate unpaid balance for each loan and specify the type of loan (e.g., FHA, VA, State of California, Conventional).

  5. Fire Insurance Policy: Document: Copy of your existing fire insurance policy if it will be transferred to the buyer upon closing.

  6. Homeowner’s Association (HOA) Information (if applicable): Details: HOA name, address, phone number, and monthly dues. Provide copies of the By-Laws, Articles of Incorporation, and Covenants, Conditions, and Restrictions (CC&Rs) to be delivered to the buyer before closing.

  7. Tax Statements: Documents: Current tax statement and receipts, if available.

  8. Tenant Information (if applicable): Details: Complete list of tenants, including rent amounts, payment dates, security deposits, and copies of all leases.

  9. Personal Property Description: Details: Description of any personal property included in the sale.

  10. Real Estate Broker Information: Details: Name, address, and phone number of each real estate broker to be paid a commission.

  11. Title Insurance: Details: Name of the title company issuing the policy and the type of title insurance to be provided.

  12. Water Stock Information (if applicable): Details: If there is water stock for the property, provide the name and address of the water company, along with the stock certificate for assignment and proration.

WHAT ESCROW NEEDS FROM THE BUYER

  • 1. Earnest Money Deposit
    The buyer must provide the agreed-upon earnest money deposit, which shows their commitment to the transaction. This amount is typically held in escrow until the transaction is complete.

  • 2. Loan Information
    If the buyer is obtaining a mortgage, they need to provide details about their lender and the loan process. Escrow will work with the lender to ensure all loan conditions are met.

  • 3. Proof of Insurance
    The buyer must provide proof of homeowners insurance, as lenders often require this before the loan can be funded.

  • 4. Personal Identification
    Buyers will need to provide valid identification, such as a driver's license or passport, especially for the signing of documents.

  • 5. Down Payment
    The buyer must deposit the down payment funds into the escrow account before closing.

  • 6. Title Information

  • Escrow may require the buyer to review and sign off on the preliminary title report to ensure they understand the property's title condition.

  • 7. Signed Closing Documents

  • Buyers must sign all necessary closing documents, including the deed of trust, promissory note, and other relevant forms.

  • 8. Final Payment of Closing Costs

  • Escrow will need the buyer to cover any closing costs that are due, which may include fees for the appraisal, inspection, title insurance, and escrow services.

  • 9. Wire Transfer Instructions

  • If funds are to be transferred electronically, the buyer must follow the correct wire transfer instructions to ensure the funds are properly deposited into the escrow account.

WHAT ESCROW NEEDS FROM LISTING AGENT

In a real estate transaction, escrow requires the listing agent to provide several key documents and information to facilitate a smooth closing. This includes the fully executed purchase agreement, seller disclosures, title information, and commission instructions. The agent also needs to submit any necessary HOA documents, repair receipts, and contingency removal forms. Additionally, they must ensure the seller signs the grant deed and provide specific closing instructions. Throughout the process, the listing agent should maintain clear communication with escrow to promptly address any requests, ensuring all conditions are met for a successful transaction.

WHAT ESCROW NEEDS FROM BUYER AGENT

Escrow requires the buyer’s agent to provide essential documents and coordination to ensure a smooth transaction. This includes delivering the fully executed purchase agreement, earnest money deposit, buyer compensation to buyer's agent and buyer’s contact information. The agent must also ensure that the buyer completes necessary inspections, provides proof of insurance, and meets all financing conditions. Additionally, the buyer's agent should coordinate the final walkthrough, submit any contingency removal forms, and ensure the buyer is prepared for closing by providing final payment instructions. Maintaining clear communication with escrow is crucial for addressing any issues promptly and facilitating a successful closing.

WHAT ESCROW NEEDS FROM LENDER

Escrow requires the lender to provide critical financial documentation and coordination to facilitate the closing of the real estate transaction. This includes delivering the loan approval, outlining all conditions that need to be met before funding, and providing the loan documents to escrow for the buyer's signature. The lender must also supply the final Closing Disclosure, detailing all loan terms, fees, and closing costs. Additionally, the lender coordinates the disbursement of funds to ensure they are available for closing on the agreed-upon date. Effective communication between the lender and escrow is vital to resolve any last-minute issues and ensure a smooth and timely closing.

WHAT ESCROW NEEDS FROM TITLE

Escrow requires the title company to provide essential documentation and services to ensure the property's legal transfer is clear and free of issues. This includes delivering the preliminary title report, which outlines the current status of the title, including any liens, encumbrances, or easements. The title company must also conduct a title search to verify ownership and address any title defects or issues that could impact the transaction. Additionally, the title company provides title insurance to protect the buyer and lender against potential future claims. Finally, the title company coordinates the recording of the deed and other necessary documents with the county, ensuring that the property's ownership is officially transferred upon closing.

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