What is the escrow company's role?

An escrow holder is a neutral third party who follows the written instructions of those who are a party to the escrow (i.e. the buyer, seller, lender, and brokers.  While an escrow holder does not give advice or 'protect' any party, they will make sure that your mutual instructions are followed.

Will my escrow close on time?

Your escrow officer will watch the scheduled closing date carefully, and get all of the documents and procedures within escrow's control in line for closing on time. However, it is often the timing of the buyer's loan, or the timeliness of the parties' signatures and/or availability, which dictates the actual closing date.

What if a contingency is not approved?

If either buyer or seller disapproves a contingency of the escrow, they should notify their broker and the escrow holder in writing as soon as possible, keeping in mind the "contingency dates." The escrow holder will advise all parties of the disapproval, and will await the further instructions of the parties before proceeding further with the escrow process.

If the buyer wants to cancel, what happens to the initial deposit?

Both buyer and seller will need to provide mutual, written instructions to the escrow holder as to the disposition of the funds on deposit. Once agreed, the funds will be disbursed, less any escrow fees.

What happens if the buyer and seller can't agree on an issue?

If the parties cannot agree on an issue and/or are disputing the disposition of the funds on deposit, the escrow holder may elect to file an interpleader action, which would ask the court to decide on the disposition of funds. This rarely occurs, and usually only when there appears to be no hope of a resolution.

The buyer got loan approval today- can they sign the documents tomorrow?

Once loan approval is announced, there may be a few conditions that the lender will need from the buyer, or escrow, before preparing loan documents. This may take a day or two. Once loan documents are prepared, they are sent via messenger, FedEx, or e-mail to the escrow holder. Depending on the day's schedule, escrow will then take 1-2 hours to "prep" your loan docs, and call you in for an appointment to sign.

When does the buyer put their money in to close?

By cashier's check, 2 business days prior to the close of escrow, or via wire transfer 1 business day prior to the close of escrow.

What happens after the loan documents are signed?

After you have signed your docs and leave the escrow office, your escrow officer will spend 1-2 hours getting your loan docs returned to the lender - by messenger or FedEx. The escrow holder then waits until your lender is ready to fund - usually between 24 and 72 hours after they have received the signed loan docs. In the meantime, your escrow holder will be receiving your funds and attending to any final details of your escrow.

What happens at the close of escrow?

The day before closing, your lender will "fund" your loan by wire transfer to the title company. After calculating the funding figures and final audit of your file, the escrow holder will authorize recording, or closing, for the next business day. On the closing day, the title company will provide your escrow officer with final title charges and forward the balance of the lenders funds by wire. When the wire is received, your file is balanced and the seller's funds (and any other checks) are available mid-afternoon.

Does anything ever prevent an escrow from closing?

Most escrows run a smooth course and close on time, or very close to their scheduled close date. Though rare, things like a lien on title that the seller can't or won't clear - or the buyer's inability to obtain a loan, would be reasons to prevent the close of escrow.