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UNDERSTANDING ESCROW

 

Residential Sale Escrows

A Residential Sale Escrow is more than a simple financial transaction to the parties involved. It is the most common type of Real Property Transfer. As it is often said "our heart is our home." The common denominator for Residential Properties is that not only are they our homes, they are most generally our single largest financial asset. As escrow is the Neutral Third Party, both seller and buyer are protected with the utmost of confidentiality.

Mobile Home Escrows

Mobile/Manufactured Home Escrows are a specific type of sale and quite different from "Real Property" escrows such as  single family dwelling escrows.

Mobile/Manufactured Housing Escrows involve "personal property". The convenience requirement is with a Bill of Sale rather than a Grant Deed. Registration is accomplished by filing with the California Department of Housing and Community Development, (HCD). Recording in the County is for Real Property Transfers.

Frequently Asked Questions Regarding Escrow

Why is an Escrow Necessary?
An escrow protects all parties involved. Purchasing a new home involves multiple documentation steps to complete and close a deal. An escrow is necessary in order to safeguard your funds and documents with a neutral third party until all of the instructions in the transactions have been properly followed. This helps ensure that all the provisions of the escrow have been property complied with by all parties involved.

When does the Escrow Open?
In the process of purchasing a new home, the escrow opens when the purchase agreement is signed by the buyer and seller as well as when the buyer puts down a deposit. Escrow instructions are also created and delivered to the escrow officer involved.

What are Escrow Instructions?
Escrow instructions are detailed documentation that identify all the terms and conditions of the escrow. That instruction discusses the escrow holder's general provisions and legal responsibilities and limitations. The instructions portray the agreements made between the parties with respect to the escrow and the duties of the escrow officer.