Life of an Escrow

Escrow can feel like a black box — you sign paperwork, wait, sign more paperwork, and eventually get a call saying you're “clear to close.” In reality, escrow is simply a neutral third party responsible for managing the money, documents, and conditions of your transaction so that neither the buyer nor the seller is ever at a disadvantage. Nothing changes hands until every condition both parties agreed to has been satisfied.

Here's a behind-the-scenes look at what your escrow officer is actually doing during your transaction:

1. Buyer and seller sign the purchase agreement, officially opening the transaction.
2. Buyer submits the earnest money deposit into escrow.
3. Escrow is formally opened by the buyer's or seller's agent/broker.
4. Escrow holder orders the Preliminary Title Report from the title company.
5. Escrow prepares instructions and required transaction documents.
6. Escrow holder and agents review the preliminary title report for any issues.
7. Buyer and seller sign and return escrow supplemental documents.
8. Escrow forwards a Statement of Identity to the title officer to clear title through the General Index.
9. Escrow holder contacts the buyer's lender to check loan status and conditions.
10. Escrow holder confirms loan approval, verifies terms, and orders loan documents.
11. Escrow holder reviews the file to confirm all conditions are met — termite clearance, insurance, HOA documents, lien information, and any additional paperwork.
12. Escrow holder receives final loan documents from the lender.
13. Buyer signs final loan documents and returns them with remaining funds.
14. Escrow holder verifies that all documents are properly executed and notarized, and that funds are accounted for.
15. Escrow holder formally requests funds from the lender.
16. Escrow and the title company finalize title insurance requirements.
17. Escrow holder receives funds from the lender.
18. The deed is recorded, the file is closed, final statements are prepared, and funds are disbursed.

It's a lot of moving pieces — which is exactly why having an experienced agent monitoring the process on your behalf matters. We stay in close contact with your escrow officer throughout, so you're never left wondering what's happening or what's needed from you next.