Escrow is defined as a neutral third party that acts on the instructions of a buyer and a seller to close a real estate transaction.   The escrow holder works for both the buyer and the seller, and can act only according to specific written instructions given by both parties.   Escrow consists of the following steps:

• The Purchase & Sale Agreement is drawn up between buyer and seller.
  
• Escrow receives a copy of the Purchase & Sale Agreement, along with copies of the buyer's loan application and the title search on the prospective property.
  
• Escrow then reviews and clears title on the prospective property while awaiting the buyer's loan documentation.
  
• Escrow prepares all closing documents according to the escrow instructions, which are received from all related parties.
  
• A licensed escrow representative facilitates and oversees the signing of closing documents with the buyer and seller.  At this point, Escrow receives funds from the buyer to close the transaction (a cashier's check or bank wire).
  
• The signed closing documents are then forwarded to the lender for review. Upon satisfactory review, the lender releases the file for recording.
  
• The title company records the deeds to the property with the County Courthouse.
  
• The lender balances the prospective account and forwards funds to Escrow for disbursement.
  
• Escrow receives recording numbers from the title company and distributes proper funds to related parties.
  
• Closing has occurred and title (the property) has changed ownership.

As your REALTORâ it is our job to see that all participants are performing their tasks correctly and on time; so that your transaction proceeds smoothly and closes successfully.

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