What does the term "Life of a Sale Escrow" mean in the real estate industry? The term "Life of a Sale Escrow" is a term referring to a process in the sale of real property which locally is commonly referred to as "Escrow" or "at Escrow". The below infographic details the 7 steps commonly handled by the escrow company, or closing agent, in the transfer of real property.
Life of a Sale Escrow is a pretty vague term to new home buyers as homeowners who either have never sold a home or it has been sometime since last selling. Here in Washington we typically refer to a Sale Escrow as just Escrow or the Closing Agent/Company.
Why is that? Don't know yet t makes sense because the escrow company designated on the Purchase & Sale Agreement is a 3rd party company and the company that will be closing the purchase or sale of the home or property. Continue reading to see the 7 Steps of the Escrow Process.
1. The Beginning
- Receive Purchase & Sale Agreement.
- Assign a Closing Agent and a Escrow Number.
- Contact Listing Agent & Buyer's Agent.
- Collect Earnest Money from Buyer.
- Order a Title Report if Not Previously Ordered.
- Send Welcome Packet to Buyer & Seller.
2. Search & Review
- Review Purchase & Sale Agreement.
- Review Preliminary Title Report.
- Contact Parties for Needed Information.
3. Gather Information
- Obtain Seller Payoffs on Loans & Liens.
- Obtain Title Clearing Documents.
- Receive Loan Documents from Lender.
- Receive any HOA Required Information.
- Prepare Settlement Statement & Documents.
4. The Signing
- Schedule Seller's Signing Appointment.
- Schedule Buyer's Signing Appointment.
- Buyer & Seller Never Sign Together.
- Signings can be in Person or a Mobile Notary (In or Out of State).
5. The Closing
- Return Loan Documents to Buyer's Lender.
- Escrow Company & Buyer's Lender "Balance".
- Recording Documents Sent to the Title Company.
- Lender Authorizes Recording & Wires Loan Funds.
- Title Company Sends Documents to the County for Recording.
- County Records Closing Documents & Releases Recording Numbers.
- All Encumbrances and Bills are Paid.
- Proceeds are Wired / Delivered to the Seller.
- Commission Checks are Delivered to Real Estate Firms.
- Mortgage Broker Checks are Delivered to Lending Firm.
7. The Finish
- Final Settlement Statement Delivered to All Parties.
- Record Reconveyances and Releases.
- Real Estate Broker Delivers Keys to Buyer.