Escrow And Title Insurance

Wire Fraud Advisory

Do not trust emails containing wire instructions without confirming directly with the title company. 
Once the buyer and seller have reached an agreement, the signed purchase agreement, along with the buyer's earnest money deposit, is submitted to the title company and escrow is opened. The title company becomes the escrow holder, and their responsibility is to follow the mutual written instructions of the buyer and seller. The escrow company also maintains a neutral stance to facilitate the successful exchange of money and property between the parties. In addition, the title company will follow the instructions of the lender in meeting their conditions.
Additional Escrow Company Responsibilities:
  • In a dispute, the AAR Residential Resale, Commercial and Land Purchase Contracts, gives the escrow company decision-making power over who will receive the earnest money.
  • The escrow company provides the Commitment for Title Insurance.  The document is the escrow/title company’s commitment to insure the title of the property subject to exceptions and requirements listed in the commitment. 
  • Will also provide parties with information pertaining to HOA fees and governing documents, CC&R's, and plat maps. 
  • Will transfer ownership for an on-site waste water facility and domestic water well.  
  • Will pay off any outstanding liens and real estate property taxes. 
  • Will pay off fees through escrow instructions to third parties that made inspections and repairs to the property.
  • The escrow officer completes the settlement statement or HUD-1, which shows the costs associated with the closing of a resale transaction. It shows how much money the buyer will need to bring in to close escrow and how much money the seller will receive.