What is Escrow?

Escrow is the party responsible for assembling all the various components of a real estate transaction.  It also drafts, processes and records the documents necessary to transfer legal ownership from the Seller to the Buyer. The escrow agent is a neutral third party acting on behalf of the Buyer and Seller under the instructions set forth in the Purchase and Sale Agreement, the escrow instructions, and in compliance with the applicable rules and regulations of the State of Washington.

The steps in a typical Escrow are as follows:

1. The Purchase & Sale Agreement is drawn up between Buyer and Seller.
2. Escrow receives a copy of the Purchase & Sale Agreement, the Buyer’s loan application and the title search on the prospective property.
3. Escrow then reviews and clears title on the prospective property while awaiting the Buyer’s loan documentation.
4. Escrow prepares all closing documents according to the escrow instructions, which are received from all related parties.
5. A licensed escrow representative facilitates and oversees the signing of closing documents with the Buyer and Seller (in separate meetings).
6. At this point, Escrow receives funds from the Buyer to close the transaction (a cashier’s check or bank wire).
7. The signed closing documents are then forwarded to the Lender for review.  The Lender usually reviews the documents in 1-2 days.
8. After satisfactory review of the loan documents, the Lender verifies with Ashcroft the exact amount of funds to be forwarded to Escrow for disbursement, and “releases”  the deeds for recordation with the County.
9. The Title Company records the deeds to the property with the County Courthouse.
10. After receiving recording numbers from Title, Escrow distributes funds to all parties in accordance with the Settlement Statement.
11. The transaction is officially “Closed” and the Buyer now legally owns the property.

The Escrow Process and Responsibilities

				NEW OWNER!
Escrow Opened By: Listing Agent: Seller or Selling Agent: Buyer	Lender: Insurance Binder Underwriting Mortgage Insurance Verification of:    Buyers Funds Employment Appraisal Credit Report Determine Status of:    Homeowners Dues, Fees, Commissions, Taxes, Liens, Mortgages, Review & Clear Title, Check Taxes & Legal	Title Insurance: Title Search Examination Issue Commitment Record Documents Issue Policy Oversees: Closing Signing Documents Prepare Legal Documents Creates: Settlement Statement & Supplemental Escrow Instructions