So you will not be placed in an uncomfortable position when you purchase a home in our area, an understanding of the earnest money deposit is of the utmost importance. At the time a written offer on a property is initiated, you will generally be required by the seller to include a personal check, cashier's check, or cash. The amount deposited will generally be kept in the Escrow account of the title company and not turned over to the seller. This money represents your sincerity in the attempt to purchase and is totally refundable if the offer is not accepted. You should anticipate approximately 3% of the selling price, as earnest money, will be required at the time of the original offer.

 

 

When the property has been sold, normally the broker or agent will go to the title company and open an escrow. The escrow will be assigned an escrow number and escrow officer. The officer will then order a preliminary title report, draw escrow instructions, and any other necessary papers in connection with the transaction. When the escrow officer receives the preliminary title report, copies are then delivered to the broker or agent, buyer, seller, and lender. From this report the escrow officer can see what liens are recorded against the property that will have to be cleared prior to the close of escrow. The officer will send payoff demands to the existing lien holder(s) of record in order to pay them off at the close of escrow. The officer will clear everything against the owner of record and/or subject property, and bring the seller current on any taxes upon close of escrow. The proper documents are then ordered - deed, deed of trust, etc. - and any other documents that might be needed in a particular transaction. When all the necessary papers have been signed and all monies received, the documents needed are then recorded. The escrow officer will then make the necessary disbursements and do all closing papers, due to the fact that once the documents have been recorded, escrow has closed.

 

 

When property is to be sold or is being refinanced, the lender and/or buyer need a preliminary title report to see exactly what is against the subject property and who the recorded owner of record is. Items a preliminary title report will show: Taxes on subject property, amount owing, amount paid and assessor's parcel number Easements of record, if any. Restrictions on subject property, if any. Liens and/or judgments of record if any. Exact vesting of owner of record. When the sale or loan of the subject property is final, and the title company has recorded the necessary documents in order to close our escrow, they then issue a policy of title insurance to the new lender and/or buyer showing clear title to the subject property.