FAQs for Sellers & Buyers

General Escrow Questions

What is escrow?
Escrow is the neutral unbiased third-party that holds funds and documents during a transaction, ensuring both the buyer and seller fulfill their obligations before the transaction closes.
Why is escrow necessary?
Escrow protects both the buyer and seller by acting as a neutral party, holding funds and documents until all conditions of the sale are met.
What is the timeline for escrow?
The escrow process typically takes 30-45 days, but it can vary based on the complexity of the transaction and unforeseen issues.
Who chooses the escrow company?
It often depends on the market and regional customs, however it is customarily negotiated between Seller and Buyer.
What documents are needed during the escrow process?
This includes the purchase agreement, financing information, title documents, and personal identification.
How are funds held and released in escrow?
Funds are held in an Escrow Trust Account and released upon the close of escrow, after all conditions are met.

When will I know the exact amount of funds needed to close?
The Escrow Holder will notify you and your agent once the loan documents are received and the escrow instructions are prepared.
When do I get the keys to my new home?
The keys are typically handed over by your real estate agent upon the close of escrow, on the possession date specified in the contract.
Can I use a personal check for closing?
No, in California, closing funds must be “Good Funds” in the form of a cashier's check or wire transfer.
How does an escrow account work for my mortgage?
If your mortgage includes impounds for taxes and insurance, you'll pay a portion of your property taxes and insurance premiums into an escrow account as managed by your New Lender each month.
What are the advantages of having a mortgage escrow account?
It simplifies budgeting and ensures timely payment of taxes and insurance, preventing potential financial and legal issues.
What are the disadvantages of a mortgage escrow account?
Some may prefer to manage their own funds and may find it easier to make larger payments during lucrative months.

How much will I clear from the sale of my property?
This is a common question, as it helps sellers plan for their next purchase. Please ask our office for an Estimated Closing Statement. We will need details about the condition of title to the property and the terms of sale transaction to facilitate.
When can I expect to move out?
The possession date is typically specified in the purchase agreement and is usually aligned with the close of escrow.

What are the escrow fees?
Escrow is a service based business and fees are charged based on services rendered. Please as our office for an Estimated Closing Statement.
What is title insurance and what does it cover?
Title insurance protects against title defects and is typically a one-time cost that lasts as long as you own the property.

How long does the signing appointment take?
Plan for 35 to 45 minutes to review and sign all necessary documents.
What will the escrow officer explain during my appointment?
The escrow officer will explain all documents, answer your questions, and guide you through the process.
How do I get updates during the escrow process?
Your real estate agent or the escrow officer will provide updates. Please feel free to telephone our office anytime you would to be updated as well.
What if I notice a mistake on the documents?
Notify the escrow officer immediately in writing.