What is escrow and how does it work?
Escrow is a process performed by a third party to ensure all terms and conditions of the transaction have been met; all documentation has been reviewed, signed, exchanged and filed; and funds have been disbursed to the appropriate parties. The purpose of escrow is to simplify the closing, ensure an objective third party is available and the transaction occurs legally and expeditiously. At the opening of escrow the escrow company will assign an escrow officer to your transaction.
You may want to call your escrow officer prior to closing to ensure he or she has all of the pertinent information and documents they require. Establishing this relationship may help prevent a snag along the way.
How does the closing process work?
The close of escrow consists of three steps: reviewing, signing and exchanging documents; filing of documents and the disbursement of funds.
- Reviewing, signing and exchanging documents: This is when you review and bless the closing documents with your signature. You may encounter anywhere from five to fifteen documents needing a signature such as the mortgage.
- Filing of closing documents: This is when the escrow officer notarizes and submits all of your paperwork to the appropriate parties such as the lending institution and government agencies.
- Disbursement of Funds: This is when the funds of the transaction are sent to appropriate parties.
How does your deed get recorded?
Your deed gets recorded once the escrow officer sends it to the registrar office. You will receive a copy of the actual recorded deed in the mail in 6-8 weeks after the registrar office files the paperwork.
Do not assume your deed is recorded. Keep your eye out for a letter from the county registrar office and check that the deed information is accurate. If you do not receive the deed after 8 weeks or the information is inaccurate, give the registrars office a call.