Escrow and Closing Information - Northern California Home

ESCROW AND CLOSING

To finalize the sale of the home a neutral, third party (the escrow holder, a.k.a. escrow agent) is engaged to assure the transaction will close properly and on time. The escrow holder insures that all terms and conditions of the seller's and buyer's agreement are met prior to the sale being finalized, including receiving funds and documents, completing required forms, and obtaining the release documents for any loans or liens that have been paid off with the transaction, assuring you clear title to your property before the purchase price is fully paid.

The documentation the escrow holder may be collecting includes:

Loan documents
Tax statements
Fire and other insurance policies
Title insurance policies
Terms of sale and any seller-assisted financing
Requests for payment for various services to be paid out of escrow funds

Upon completion of all instructions of the escrow, closing can take place. All outstanding payments and fees are collected and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the property is then transferred to the seller and appropriate title insurance is issued as outlined in the escrow instructions.

At the close of escrow, payment of funds shall be made in an acceptable for to the escrow.

The Escrow Holder Will:		The Escrow Holder Won't:
Prepare escrow instructions Request title search Comply with lender's requirements as specified in the escrow agreement Receive funds from the buyer Prorate insurance, tax, interest and other payments according to instructions Record deeds and other documents as instructed Request title insurance policy Close escrow when all instructions of seller and buyer have been met Disburse funds and finalize instructions		Give advice - the escrow holder must maintain neutral, third-party status Offer opinions about tax implications

Who Pays For Which Closing Costs - Buyer or Seller?
Allocation of Closing Costs Between Buyers and Sellers - Most California Counties

The SELLER Can Generally Be Expected To Pay For:	The BUYER Can Generally Be Expected To Pay For:
Title insurance premium covering loan policy (Buyer) Escrow Fees (1/2) Real Estate Commission Document preparation fee for deed Document recording charges that effect the seller County Transfer Tax ($1.10 per $1,000 of sales price) This varies with county & city Any loan fees required by buyer's lender (as per contract) Notary fees - Sellers Documents Any city transfer/conveyance tax Special delivery/courier fees Payoff of all loans in sellers name Interest accrued to old lender, Statement fees, Reconveyance fees and any prepayment penalties Homeowners' association transfer fee and prorata dues (Negotiable) Bonds or assessments according to contract Termite inspection according to contract Termite work or repairs according to the contract Home warranty according to the contract All delinquent taxes Any judgment, tax liens, etc against the seller Recording charges to clear all documents of record against seller	Title insurance premium covering loan policy (ALTA) Escrow Fees (1/2) Notary Fees - Buyers Documents Document preparation fees - Buyer documents Termite Inspection according to contract Inspection fees (roofing, geological, property, etc.) Special delivery / courier fees All new loan charges (except those requires by lender for seller to pay) (as per contract) Interest on new loan from date of funding to 30 days prior to first payment Home warranty according to the contract Fire insurance premium for first year City transfer/conveyance tax according to the contract Preliminary change of ownership fee Assumption / change of records fees for takeover of existing loan Beneficiary statement fee for assumption of existing loan Other prorations if applicable
The Above items are negotiable between the buyer and seller, as agreed upon in your individual sales contract. This is for informational purposes only and reflects typical charges.

Mortgage Escrow Account

A Mortgage Escrow Account is established to pay on-going expenses while there is a loan on the house. These expenses include property taxes, home insurance, mortgage insurance, and other escrow items. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.