The Transaction Steps

Purchase and Sale Agreement   
  

Once the purchase and sale agreement is mutually accepted by all parties your agent will deposit the earnest money check in the Broker's Trust Account and escrow is opened by delivering the agreement to escrow.

Title Insurance             

The seller provides title insurance to the buyer and the buyer provides title insurance to the lender.  Title is searched against the County Auditor, Assessor, and other agencies of the government to locate anything affecting the title to the property.  The title will show all matters of public record affecting the subject property. The escrow agent is responsible to clear title of all unapproved encumbrances.

Escrow                    

The escrow agent is a neutral third party disburses the parties funds, prepares an accounting of the transaction, prepares statements and documents all in accordance with the terms of the purchase and sale agreement.  The escrow agent reviews the agreement and the title, orders loan payoffs and other monetary liens encumbering the property.

Financing and Processing

The lender underwrites the loan by verifying the buyer's funds to close, employment, credit approval, and sufficient subject property appraisal.  Once underwriting approves the loan then sends the loan docs to escrow with specific instructions.  The escrow agent prepares final statements, title transfer documents and escrow instructions. 

Signing       

After the escrow agent reviews the loan docs and prepares the closing statements and transfer documents, appointments with the buyer and seller  are scheduled.   The buyer and seller will sign the closing documents.  Escrow notarizes the docs and the buyer's closing funds are deposited with the escrow agent.  

Lender Review   

After all docs are signed, the escrow agent returns the loan docs to the lender for final review.  Lenders usually require 24 hours to review docs before  releases the funds to record the transaction agreement.

Closing    

Upon approval by the lender, the deed and mortgage are delivered for recording at the County Auditor.  Once recorded the escrow agent closes the transaction by:

1. Confirms receipt of funds,

2. Disburses funds according to all parties instructions: Pays off debts, encumbrances, all bills, real estate commissions, seller net proceeds.

3. Verbally notifies the seller, buyer and real estate agents that the transaction is closed.  The buyer is allowed possession according to the agreement.