What is involved in the close of escrow?
If you have been conscientious during the pre-closing period the actual close of escrow is a straightforward process. The close of escrow consists of signing and filing of all documents.
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 flied; and funds have been disbursed to 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. 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 the buyer reviews and blesses the closing documents with their signature.
- Filing of closing documents: This is when the escrow officer notarizes and submits all 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 disbursed to you or your lender.