The Lender

  • Deposits proceeds of the loan to the purchaser.
  • Directs the escrow holder on the conditions under which the loan funds may be used.

The Escrow Holder

  • Opens the order for title insurance.
  • Obtains approvals from the buyer on title insurance report, pest and other inspections. Receives funds from the buyer and/or any lender. Prorates insurance, taxes, rent, etc.
  • Disburses funds for title insurance, recordation fees, real estate commissions and lien clearance. Prepares a final statement for each party, indicating amounts to be disbursed for services and any further amounts necessary to close escrow.
  • Records deed and loan documents, delivers the deed to the buyer, loan documents to the lender and funds to the seller, closing of escrow.

The Seller

  • Deposits the executed deed to the buyer with escrow holder.
  • Deposits evidence of pest inspection and any required repair work.
  • Deposits other required documents such as tax receipts, address of mortgage holder, insurance policies, equipment warranties or home warranty contracts, etc.

The Buyer

  • Deposits the funds required, in addition to any borrowed funds, to pay the purchase price with the escrow holder.
  • Deposits funds sufficient for home and title insurance. Arranges for any borrowed funds to be delivered to the escrow holder.
  • Deposits any deed of trust or mortgages necessary to secure loans.
  • Approves any inspection reports, title insurance commitments, etc. called for by the purchase and sale agreements.
  • Fulfills any other conditions specified in the escrow instructions.