Residential Resales   

Definition: The process of buying and/or selling a previously owned home

Escrow’s role in the sale or purchase of a previously owned home is to ensure the following is achieved by all parties to the transaction.

·         Seller and buyer enter into a written agreement setting forth the purchase price, financing terms, buyers amount of earnest money deposit and the length of the escrow. The parties should further negotiate the requirements (if not lender required) of a termite report and completion work, if any.

·         Once the buyer and seller establish the agreements, both parties must sign and date the document. At that time, take a copy of the signed agreement together with buyers earnest money deposit to Home Escrow.

·         Home Escrow Co., Inc., will prepare instructions in accordance with the written agreement. The escrow instructions must be signed in part by the buyer and seller.

·         Home Escrow Co., Inc., will open a title search in what is known throughout the industry as a “preliminary title report” with a reputable title company. The preliminary title report will reflect what loans are on the property. It will show if there are any unpaid property taxes, state or federal tax liens or judgments (against the seller or buyer). Your Escrow Officer will be able to ascertain the validity of these liens and/or judgments with the title company

·         Home Escrow Co., Inc., obtains the existing loan information from the seller and will order written payoff statements from the existing lender(s)

·         Buyers new loan is approved and final loan documents are prepared and signed. Home Escrow will calculate buyers final amount to bring and close and order insurance for the purchase. Home Escrow will at that time forward the signed loan package to buyers new lender and await the final loan funding 

Once all the conditions have been complied with, the title company, upon authorization from your Escrow Officer, will have the Grant Deed recorded in the appropriate county to transfer ownership in the property to the Buyer (additional documents may also be recorded including the trust deed which is the buyer’s new lender’s security document).   At that time, the title company will use buyers new loan funds and payoff the existing loan(s), property taxes and/or any liens or judgments. The balance of funds are then wire transferred to Home Escrow for final disbursement.