What to know and expect while in Escrow
Here is a basic checklist for any general home buying or selling situation that begins once escrow opens:
What to know about Escrow as Home Buyers:
- It is critical to know the terms of your new loan: the rate of interest and that total amount borrowed.
- Have handy the lenders name, contact number, and address.
- The contact information of your property insurance agent, as well as their history and background.
- Be sure to take note of your full name usage, marital status, and how you wish to attain title to your property. Depending on the buyer’s personal knowledge and experience, you may want to consult with a finanacial planner, attorney, or CPA with regards to the surrounding circumstances and potential consequences of the buyer’s property type: separate parcel, joint tennacy, community parcel, or survivor of ownership.
- Researching educate yourself as a buyer on a earnest money deposit (which may be a requirement of your residential property purchase terms.
- Above all, be sure to remain proactive and inquisitive; demanding a certain leven of information and accountable guidance from the 3rd party escrow company.
What to know about Escrow as Home Sellers:
- The proprietary and contact information for each lending organization with which you have open mortgages.
- As a seller, it is vital to be aware of the estimated balance of current loans against the parcelto be sold, in addition to mortgage type: FHA, private contract loan, VA, state of California loans, or conventional lending.
- Vital to present the original title policy / grant deed (not a copy), to best provide an accurate legal depiction of the parcel to be sold.
- Seller’s must have a copy of your Home Insurance Policy.
- Vital to deliver copies of Covenants, Conditions, and Restrictions (AKA CC&R’s) as well as any other by-laws that apply to the parcel, any articles of incorporation, or any other overviewing rules of development for the property to the buyer before the close of the escrow.
- Vital to know the Home Owner’s Association (HOA) proprietary and contact information and the amount of monthly dues owed.
- If property subject to transaction is a current rental, then the seller must provide a list of the current tenants, which includes rent amount agreement, payments dates, details for any cleaning or security deposits made by the lease to the past owner, as well as all actively agreed upon lease documentation other historical documentation relevant to the lease agreement or transgression.
- A specified written account of all and any personal property that has been agreed as incorporated into the sale.
- Full propietary information of the Title company issuing the poilcy, along with the kind of title insurance to be allocated to the property.
- A current property tax statement.
- In the event of a water stock ownership matter, California water companies are owned mutually with local homeowners as the active shareholders. In such a case the water stock becomes contingent to the sale of the property, and must be included as a part of the parcel sale contract. In this case it is the duty of the seller to supply the escrow company with the water stock certificate, as well as the proprietary and contact information of the owning company.
- Proprietary and contact information of each real estate agent to be involved in the transaction as receiving a sales commission from closing price (buying and selling agents).