What is Escrow?
Put simply, escrow is a neutral third party in a real estate transaction. They are the impartial referee making sure an agreement for the purchase of real estate is carried out to the letter.
There are many escrow service providers in San Diego that are dedicated to being a trustworthy neutral third party in transactions big and small. Their goal is to ensure that the terms of the contract are carried out to their successful end in a neutral manner.
Once a fully executed purchase agreement is created, the agent representing the Seller typically opens escrow by depositing the agreement and instructions with them. Here are some tasks escrow is typically charged with carrying out during a transaction:
- Receiving the fully executed purchase agreement and using them as instructions for the entirety of the transaction.
- Receiving and holding the Buyer’s initial deposit aka “Earnest Money Deposit (EMD).”
- Receiving and holding all funds required in the purchase agreement.
- Accounting and calculating all items paid through and by escrow
- Order HOA documents as part of any required disclosures, if any.
- Communicates with Lenders, Title Insurance Companies, and all parties to the transaction to ensure a smooth transaction.
- Handles notary signings.
- Disburses all funds at close to all appropriate parties.
- Records sale documents with the City of San Diego.
Escrow handles this and more. All instructions to escrow must be in writing and signed by all parties to the transaction. Escrow’s strict adherence to this principle ensures that all steps taken are agreed upon without exception.
REALTOR® Erick Salgado and his team work diligently alongside escrow to ensure that everyone is informed and that every transaction goes smoothly and ends with a successful sale. Visit https://oakwoodescrow.com/mission-valley/ for more information about escrow.