When the purchase agreement is accepted and signed by all parties, your Sales Associate will open escrow for you and your earnest money will be deposited. The escrow is neutral third party that will receive, hold, and distribute all funds associated with your transaction.
Removing Contingencies
Prior to closing escrow, all of the contingencies of the Purchase Agreement must be met. Your Sales Associate will coordinate this process. Typical contingencies include:
Closing The Escrow
Closing escrow is a legal transfer of title to the property from the seller to the buyer and is the culmination of the transaction.
Once all the conditions of the escrow have been satisfied, the escrow officer advises you of the date the escrow will close and takes care of the technical and financial details. Usually the Grant Deed and Deed of Trust are recorded within one working day of the escrow's receipt of loan funds. This completes the transaction and signifies the "close of escrow".
When all of the terms and conditions of escrow of both buyer and seller have been fulfilled, and all closing conditions satisfied, the escrow officer will return the instructions and documents to the lender for a final review. Following the review, which usually occurs within a day or two, the lender is ready to fund the loan and advises the escrow officer, so that the necessary work can be completed to record to documents and "close" the escrow.
The title company will then disburse the documents and monies to each party involved in the transaction, and the keys to the home will be turned over to the buyers.