Steps in Closing and Escrowing a Property

It all begins with the offer and acceptance negotiated by the real estate agents representing Buyer (Selling Agent) and Seller (Listing Agent).

• Makes a written offer to purchase (or accepts the Seller's counter-offer) accompanied by a good faith deposit amount called Earnest Money.
• Approves and signs the contract and other related instruments required to complete the transaction.
• Approves the preliminary contract and any property, disclosure or inspection report called for by the purchase and sale agreement.
• Approves and signs new loan documents and fulfills any remaining conditions contained in the contract, lender's instructions and/or the escrow instructions.
• Deposits funds necessary to close the escrow. Approves any changes by signing amendments in the contract.

The Lender / Mortgage Broker (when applicable)

• Accepts the new loan application and other related documents from the Buyer(s) and begins the qualification process.
• Orders and reviews the property appraisal, credit report, verification of employment, verification of deposit(s), preliminary contract and other related information.
• Submits the entire package to the loan committee and/or underwriters for approval. When approved, loan conditions and title insurance requirements are established.
• Informs Buyer(s) of loan approval terms, commitment expiration date and provides a good faith estimate of the closing costs.
• Reviews and approves the executed loan package and coordinates the loan funding with the escrow officer.

• Baymark Title receives an order for title and escrow services.
• Orders the preliminary report and examination on the subject property from our searcher.
• Acts as the impartial party or depository for all documents and monies required to complete the transaction per written instructions of the principals.
• Prepares the title commitment and required documents in accordance with terms of the sale and the lender’s instructions.
• With the authorization from the real estate agent and/or lender/broker, orders payoffs on existing deeds of trust and liens or judgments, if any, that may be found on title.
• Reviews documents received in the escrow: title commitment, payoffs, new loan package and other related instruments. Reviews the conditions in the lender's instructions including the homeowner’s insurance, title insurance requirements and property taxes due.
• Presents the documents, statements, loan package(s), estimated settlement statement(s) and other related documents to the principal(s) for approval and signature, and requests the balance of the buyer's funds.
• Reviews the loan proceeds that are due from the lender.
• Determines when the transaction will be ready to close and advises the parties.
• Closes the escrow by preparing the final settlement statements, disbursing the proceeds to the Seller, paying off the existing liens and other obligations. Delivers the appropriate statements, funds and remaining documents to the brokers, lenders and/or agents.
• Assisted by title personnel, records the deed, deed of trust and other documents required to complete the transaction with the County Register. Once the documents have been recorded we prepare the title insurance policies that are issued by United General Title Insurance Company.

The Seller(s)

• Accepts Buyer's Offer to Purchase and initial good faith deposit to open escrow.
• Submits documents and information to escrow holder, such as: addresses and phone numbers of lien holders, loan numbers, social security numbers, tax receipts, home warranty contracts, any leases and/or rental agreements.
• Approves and signs the escrow instructions and other related documents required to complete the transaction.
• Orders inspections, receives clearances and approves final reports and/or repairs to the property as required by the terms of the purchase and sale agreement.
• Fulfills any remaining conditions specified in the contract and/or escrow instructions; approves the pay off demands and/or beneficiary's statements.
• Approves any final changes by signing amendments to the escrow instructions or contract.