Gregg and Lisa Whitney are pleased to provide their esteemed international clientele this helpful information about purchasing a home in La Jolla, California. We know that purchasing a property in another country can be confusing and that’s why we provide to all interested Buyers clear, concise, helpful and accurate information about the buying of property in La Jolla, California. Please contact us directly with any questions or to receive more information.

The Escrow Process
What is Escrow?
An arrangement with a disinterested third party (an escrow holder) who holds onto funds and legal documents and then disperses the funds according to the agreements made by the Buyer and Seller is an escrow.

Why do you need an Escrow?
An escrow account is for your convenience and protection. As a Buyer you can place conditions upon the escrow holder to only release the funds for the purchase price after certain criteria have been met. As a Seller you can require the escrow holder to only transfer the deed of the property to the Buyer after the purchase price has been received and other requirements are satisfied.

It is an escrow holder’s responsibility to execute all agreements and arrangements between a Buyer and a Seller and to advise either party if a requirement has not been met or cannot be met.

An escrow also creates a mutual repository for all of the legal document reports, inspections, loan documents, etc. If the escrow contains clear and concise instructions it is also capable of carrying out tasks without either parties needing to be present or take further action. A well instructed escrow can help to speed the process along.

Who is able to hold Escrows?
In some states you must be licensed to hold an escrow and all states require that you be a disinterested third party. For an escrow holder you will want to select a reputable escrow firm, a bank escrow officer, a title insurance company, an S &L, or an attorney. There is a great deal of knowledge and expertise required to navigate a real estate transaction without difficulty. A well chosen escrow holder can greatly enhance the buying process.

In order to properly protect your interest you will want to choose an experienced and reputable escrow holder. Part of the responsibility of an escrow holder is to remain impartial throughout the process.
It is incumbent upon the escrow officer to maintain a formal relationship with both parties and restrict conversations to matters of the escrow.

Escrow Instructions
Instructions for an escrow are written and signed documents giving the escrow officer specific tasks to be finished in order for the escrow to be closed.

Typical Escrow Instructions may include:

1. The method of payment in which the purchase price of the property will be disbursed to the Buyer.
2. Directives about prior liens or charges against the property and payment of such.
3. Directives about insurance and prorating of taxes.
4. Authorization and instruction about payment for title insurance, recording fees, closing costs, real estate commission, and other potential costs.
5. The criteria under which the escrow could end without a closing.

Responsibilities in the Escrow Process

The Seller:

1. Hands over the deed executed to the Buyer to the escrow officer.
2. Delivers proof of pest inspection and repair work to the escrow holder.
3. Delivers legal and informational documents to the escrow holder such as insurance policies, home warranty contracts, addresses of mortgage holder, tax receipts, equipment warranties, etc.

The Buyer:

1. Takes all funds required (saved and borrowed) to purchase the property and deposits them with the escrow holder.
2. Additionally deposits required funds to pay for the home and title insurance.
3. Makes arrangements for borrowed funds to be delivered to the escrow holder.
4. Insures that deposits of deed and trust or mortgages needed to secure land are deposited with the escrow holder.
5. Looks over an approved title, insurance commitment, inspector reports, and other documents required by the purchase agreement.
6. Carries out any other specified and agreed upon conditions in the escrow. agreement.

The Lender: (when applicable)

1. Delivers borrowed funds to the Buyer.
2. Instructs the escrow holder as to the appropriate disbursement of the loan funds.

The Escrow Holder:

1. Gets the Buyer’s approval on title insurance reports, pest inspections, and various other reports and inspections.
2. Accepts and deposits funds from all parties.
3. Prorates taxes, insurance, rents, etc.
4. Opens the order for title insurance.
5. Pays out funds for recordation fees, real estate commissions, lien clearance, title
   Insurance, etc., as directed.
6. Composes a final statement for all parties clearly outlining the amount of money needed to pay for any additional services or fees needed in order to close escrow.
7. Closes escrow by delivering the deed to the Buyer, the loan documents to the lender, money to the Seller, and recording the deed and loan documents appropriately.

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Closing Escrow
After all of the conditions of the escrow are met and the deeds, documents, and funding are appropriately disbursed and transferred, escrow is closed.

Who pays for the Escrow Service?
Generally, the fee is divided between the Buyer and the Seller. How it is divided can vary greatly depending upon the location.

We at Whitney and Associates hope that you found this information helpful and enlightening. Experience the difference with Gregg and Lisa Whitney as embark on a lifestyle afforded exclusively to the rich, famous and utterly fabulous. Their exceptional service is unparalleled…Their knowledge and proven success in the La Jolla, California real estate market are beyond compare… unparalleled. For immediate answers to your questions and to begin your exciting home search in La Jolla, California, contact Gregg and Lisa directly at 848-456-3282.

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