At Escrow of the West, our goal is to make your next escrow smooth and error-free, and our expertise begins at the first stage of escrow: opening the escrow account.
Understanding the first steps of this process sets the stage for a more comfortable experience throughout the entire escrow process.
This article outlines the steps you’ll take to open an escrow account, as well as the information you’ll need to give your escrow officer to make your escrow quick and seamless.
Who Chooses the Escrow Company?
Ultimately, it is the right of the Buyer and Seller (also referred to as the Principals) to choose an escrow holder who is impartial, competent, and experienced in handling the type of escrow at hand.
What To Consider When Choosing An Escrow Holder
When considering an escrow company, look for indications that the escrow holder is a reliable impartial third-party.
Escrow departments overseen by real estate brokers, mortgage brokers, banks, and title insurance companies are not bound to follow as strict regulations as those imposed on independent escrow companies, which are licensed by the Department of Business Oversight.
Independent escrow companies are bound to rigorous requirements designed to protect consumers. Escrow of the West, an independent escrow company, must comply with stricter auditing, bonding requirements, financial liquidity requirements, and trust fund insurance guidelines.
Ultimately, you should trust that your escrow holder will not allow the property to change hands until all of the instructions in the transaction have been followed.
How To Open An Escrow Account
Typically, the escrow account is most often opened by the seller’s real estate agent, but escrow may be opened by anyone involved in the transaction.
Escrow may be opened via phone call, email, or in person; or, click here to open an escrow account on Escrow of the West’s website.
When opening an escrow account, the escrow officer will ask for the following information:
- Property street address
- Sale price
- Property type (e.g., single-family or duplex)
- Full names and contact information of all parties involved, including email addresses
- Purchase Agreement, Counter Offers, Addendums
- Listing Commission and Selling Commission percentage
- Name and phone number of the property Homeowners’ Association, if applicable
Once the escrow officer receives a fully executed purchase agreement, an escrow number will be assigned to your transaction. After the escrow number is issued, the escrow officer will begin the next step: ordering a Preliminary Report or Commitment from the title company and will request the initial deposit from the Buyer.
Tips To Remember When You Are In Escrow
Your escrow file will grow, item by item, until all of the conditions have been met and escrow is ready to close. Escrow can be a complex process, but the Escrow of the West team is here to help you every step of the way.
- When calling the escrow company, have the escrow number and names of everyone involved handy
- Keep the escrow officer informed on any matters that may affect the transaction. Remember, your escrow officer is here to expedite the process and effectively serve everyone’s interests
- Direct any questions you have to the proper representative:
- Real Estate Agent: handles physical aspects of property, conflicts, and terms of sale
- Lender: handles loan terms, credit report issues, etc.
- Escrow Officer: serves as a neutral third party to accomplish the closing of escrow. Learn more escrow officer’s responsibilities
Take a look at this infographic for a quick overview of the typical escrow process.
View our escrow services or call us at 866-444-5560.
