The Escrow
Process

Navigating real estate escrow involves sequential steps to ensure title, legal documentation, and funds are handled securely by a neutral third party before ownership is officially transferred.

• 1. Contract Execution & Escrow Account Opening: The buyer and seller sign the purchase agreement, and the contract is delivered to a neutral escrow officer or title company to open the official escrow account.

• 2. Earnest Money Deposit: The buyer deposits initial earnest money (typically 1% to 3% of the purchase price) into the escrow account within the contractually agreed timeframe (usually within 3 business days).

• 3. Home Inspections & Disclosures: The buyer orders professional property inspections, reviews seller property disclosure forms, and negotiates any requested repairs or price credits based on the findings.

• 4. Appraisal & Mortgage Underwriting: The lender orders an independent appraisal to confirm the property’s fair market value meets the loan requirements while underwriting processes final mortgage approval.

• 5. Title Search & Insurance Commitment: The title company conducts a comprehensive public record search to verify clear ownership, clear any outstanding liens or encumbrances, and prepare title insurance policies.

• 6. Review of the Closing Disclosure (CD): The lender issues the Closing Disclosure at least three business days before closing, detailing final loan terms, closing costs, and the exact cash balance required from the buyer.

• 7. Final Walkthrough: The buyer inspects the property shortly before signing to verify it is in the agreed-upon condition and that negotiated repairs have been completed.

• 8. Document Signing & Wire Transfer: The buyer signs all final loan and title documents with a notary and wires the remaining down payment and closing costs to the escrow account.

• 9. Funding, Recording, & Key Transfer: Escrow receives lender loan funds, disburses payments to the appropriate parties, records the deed with the county, and officially transfers keys to the new owner.