Opening The Escrow ~ A checklist For Success

 

1.      A copy of seller’s existing title policy is not available, provide escrow officer with the following:

 

a.      Legal description and address of property

b.      Assessor’s Parcel Number  (APN)

c.      Name of  party in ownership

d.      Name of existing lienholders and type of loan, i.e. VA, FHA, CONVENTIONAL

 

2.      Direct which liens are to remain and which are to be paid in full. Name, address and loan number of existing lienholder (Last coupon in client’s book is helpful). Request a 30 day notice letter if an FHA loan is being paid off.

 

3.      Full names, addresses (inclusive of zip codes) and phone numbers of parties involved. This includes buyers, sellers, real estate agents, and new lenders with name of loan officer.

 

4.      Vesting- how buyers want to take title.

 

5.      Consider issue of required owner occupancy for residential property.

 

6.      Amount of buyer’s initial deposit.

 

7.      Amounts of commission and breakdown of payment.

 

8.      Type of property, i.e., land, single family residence, land with a mobile home, etc.

 

9.      If termite report is required, provide information as to who is paying the fee. If corrective work is required, promptly order and deposit into escrow.

 

10.  If there are rents to prorate, leases to assign and/or a Bill of Sale to be drawn, secure and deposit into escrow a rental schedule showing amounts of rents, date rents are paid and the amount of security/cleaning deposits to be credited to buyer. An inventory of personal property for the Bill of Sale and copies of all leases to be assigned should be provided to escrow.

 

11.  Inform us of all items to be prorated and the proration date.

 

12.  If there is a homeowner’s association, provide us with the name and address of the management company.

 

13.  Provide us with the hazard insurance agent’s name and phone number.

 

14.  If a loan is remaining that has an existing trust fund for taxes and insurance, direct how said account is to be handled, i.e., if the buyer is to be charged/seller credited for the balance or if the account will be transferred at no cost.

 

15.  Submittal terms of notes and security documents to be typed by escrow officer.

 

16.  Direct who is to receive copies of the preliminary report and the number of copies to be sent. Provide information as to whether copies of the tract restrictions are required.

 

17.  Discuss all closing costs and who will be responsible for each.

 

18.  Communicate all contingencies/conditions required prior to closing.

 

19.  If the seller is a non-resident of California, contact your escrow officer immediately as additional disclosures may be requires.

 

20.  If seller/buyer is a corporation, submit articles of incorporation, bylaws and a corporate resolution authorizing the sale/purchase of the subject property.

 

21.  If seller/buyer is a partnership, submit a copy of the partnership agreement and a copy of the record statement/certificate of partnership.

 

22.  If seller/buyer is a trust entity, submit a copy of the trust agreement and a signed verification of trustee.

 

23.  If a power of attorney is to be used, provide escrow and lender with power of attorney form for review and approval.