1. Draw escrow instructions according to your agreement.
2. Order a preliminary title report (“open an order”) for the property being sold. This report reveals liens of record on the property and is our guideline to assure that title is conveyed with only the liens the buyer agrees to accept.
3. Order Statement/Demands from the Lender of record, Homeowner's Association or any other lien holder that affects the title to the property.
4. Bills for termite inspection, the home warranty plan, hazard reports, repairs, etc. are collected for payment through escrow. City reports, if applicable, are ordered.
5. As soon as the loan documents are delivered, we will estimate the closing costs and call the buyer's Realtor to arrange for an appointment to sign the loan documents and bring in the closing funds. (Some lenders will give us their charges verbally prior to sending documents to us ... if so, we get a head start on the closing procedure.)
6. After buyer has signed all loan documents, they are sent to the lender with a request that the loan be funded. YOUR ESCROW HAS NOT YET CLOSED. DEPOSITING CLOSING FUNDS INTO ESCROW DOES NOT CLOSE THE ESCROW... RECORDING THE DEED CLOSES THE ESCROW.
7. When the buyer's new loan has been approved, we order the evidence of insurance from the buyer's insurance agent. It is needed prior to the funding of the loan.
8. Lenders have different time schedules ... some fund locally and need only a few hours notice to fund and others will need a full day's notice. Some lenders fund out of the county or are funded by another agency and need as much as 2 days notice from the time they receive the signed documents back in their office.
9. After a lender verifies that they are in a position to release the loan funds, we call the title company to "set-up" the recording. Recordings are done in Los Angeles County at 8:00 a.m. The title company will re-check the county records the night prior to recording to ensure that no new liens have been recorded since the preliminary title report was issued. On occasion, a new lien will appear and the recording will be "pulled" until a clearance of the new lien can be obtained. The title company will call escrow to confirm recording and give their charges. We then balance the funds of the escrow, type closing statements and disburse funds. Escrow is now closed.