by: Suebrett Tonic
You've successfully navigated getting your offer accepted, now it's time to go through the escrow process, but what is this escrow process and why is it so important? To facilitate the terms that a buyer and seller have agreed upon a neutral third party is employed to insure that everything is as it should be prior to transferring ownership.
There are many important actions which take place during the escrow process, but there are a few main points that you should be informed of as you make your way through the process.
1. Open Escrow
To open escrow the Buyer will deposit the earnest money with the escrow company. This is called the earnest money deposit or EMD if we're using Realtor jargon. Basically, these are good faith funds held by the escrow company letting the Seller know you are serious about purchasing the property. The amount of earnest money is agreed upon within the purchase agreement.
2. Research Title
In the State of Nevada escrow & title are generally handled by the same company. This varies from state to state. However, a detailed search of the title connected to the property is conducted and reviewed by multiple parties for inaccuracies and/or issues which would prevent providing clear title to transfer ownership. Once this is completed a Title Commitment is issued.
3. Provide Title & Escrow Documentation
In any real estate transaction there could be up to 20 different people involved in getting the property transferred to a new owner. Along the way many of these individuals will need to review the various documents associated with the property. For example, the lender will need to review the preliminary title report as part of their loan checklist.
4. Request Payoff Information
Your escrow officer will order payoff demands from the Seller's mortgage company, the HOA company, water company and sewer/trash company to make sure that clear title is transferred to the Buyer. They will also provide a breakdown of prorations based on the contract and closing date of the transaction so that the various companies are paid current.
5. Set Signing Appointments For All Parties
The escrow officer will set-up appointments for all parties and arrange for a mobile notary for out of town parties to the transaction. Your signature will need to be notarized on some documents and the escrow company provides this service as part of their process. They will also let you know the amount you will receive from your proceeds of the sale or how much you need to bring in to complete the transaction.
6. Review All Documents
Once all documents have been fully executed the escrow officer will verify that all terms of the contract have been met, send the executed documents back to the lender, and request the funds from the lender to complete the transaction.
7. Record The Transaction
Once all funds have been received by the escrow company the escrow officer will send the appropriate documents to the County Recorder to transfer the ownership. Once the recording is confirmed the escrow officer will disburse funds to all parties to the transaction per the contract. This could include the following: mortgage payoffs, lien payoffs, commissions, reimbursements, etc.
It is these important hurdles that take place in the time it takes to get through the escrow process. Depending on the type of transaction you are working through there could be more and sometimes less steps. Your local real estate agent and escrow officer are your best resource to explain the processes specific to your area.
For all of your Las Vegas and Henderson real estate needs, please contact The John & Tonic Group with Keller Williams Realty Southwest at (702) 513-3322 or visit us on the web at www.VegasVipHomes.com
