Opening escrow doesn’t have to be scary!
Are you interested in buying or selling a home? If that’s the case, the word “escrow” you’re going to start hearing a lot. On the Eastside of Los Angeles including Highland Park “escrow” is the neutral third party whose job is to make sure the purchase agreement is honored. Typically, in Highland Park, the escrow is opened by the listing real estate agent. This is common practice for all of greater Los Angeles.
Escrow may be opened via telephone, email, website form or in person, depending upon the preference of the agent and which options are available through the escrow company. An “escrow number ” is assigned and the appropriate information is entered into the new escrow file. Upon issuance of an escrow number, the escrow officer will order a Preliminary Report or Commitment from the title company or title department.
Buying and selling a home in Highland Park CA
The escrow officer will need some basic information in order to open and proceed with the escrow:
- The correct street address and parcel # of the property, if available
- Sales price
- Full names of all parties involved and marital status
- Contact information for all parties
- The seller’s existing lender name, loan number, contact information, and the approximate unpaid loan balance
- The buyer’s new lender contact information if applicable
- Homeowner’s association information, such as address and dues if applicable
- HOA management company information (if any)
- Commission amount and additional conditions of the sale
Generally, the first item to enter the escrow is the buyer’s initial deposit – typically 3% of the purchase price. The rule of thumb is escrow really isn’t officially opened until the buyers EMD is received by escrow. The escrow file will grow, item by item, until all of the conditions have been met and the escrow is ready to close.
If you have any questions about the escrow process, buying or selling, or even market condition questions, call me. It would be my pleasure to give you advice and there is never an obligation.