The Escrow Process - Opening Escrow

     Once the buyer, and seller agree on terms, and sign the purchase agreement, the escrow process begins.

     Escrow must be opened within one business day. That requirement is clearly stated in your GLVAR purchase contract. Do not jeopardize a contract by not opening escrow in a timely manner.  The earnest money deposit must also be deposited within one business day, or as soon as is possible.

      First, contact the title company.  Ask what is the preferred method for opening escrow. Here are some of the common methods for opening escrow. 

   1.  Via uploading documents online
   2.  Agent drops off purchase contract in person
   3.  The title company has a runner pick up the documents from agent

      Prepare a complete copy of your purchase file for the title company. If you are giving them a paper copy, make sure to keep original documents for your broker's file.

     It is equally important to to deliver the earnest money deposit, in a timely manner. If you are delivering documents to the title company, you may deliver personal check, money order, or cashiers check at the same time. It is becoming more common for clients to wire the earnest money. If they are wiring, be sure to receive wire instructions from the title company before transferring any money.

     It is a good idea to provide title company with an information sheet.  Write down the names of the buyers, sellers, agents, and loan officers involved. It also helps you.  You will have a fast reference guide to the contact information for all the people involved.

     The buyer should be aware if  lender requires the earnest money be withdrawn from the home buyer's personal account.  Buyer should discuss down payment, and EMD requirements with lender before transferring earnest money.

     The title company will issue you a receipt for the deposit. If you do not receive receipt within two days, contact the title company. When you do receive the earnest money receipt, forward a copy to the buyer.  Also, put a copy of the receipt in your permanent file.

     At this time is is also a good idea to provide your client with the contact information for the title company. You may also provide a map.  As this is most likely the place they will sign at the closing.  If they are new buyers, you can explain the role of the title company, in their purchase.

     Congratulations. You have now opened escrow. Now, proceed with your other due diligence duties.


Further information coming soon.....