Getting Started in Escrow/Settlement

How can someone enter into escrow or real estate settlement profession. Would they be suited to the job or would they like the business? Young professionals, stay-at-home moms, even seasoned account executives all ask the questions:

• What requirements are needed to enter into the escrow profession?
• What does the job entail?
• How do I know if escrow is suited to my interest and abilities?
• How do I get started and where do I go for information?

A common problem that prospective escrow employees find is that when applying to a title, escrow or closing company for employment, they are told that without experience in the field, they would not be qualified for the position. How then can you prepare yourself for the job of your choice in the escrow profession? What job opportunities are available?

The best place to start is to understand the different levels of employment opportunities which exist in a typical escrow office.

Entry Level Positions:

ESCROW COURIER - delivering documents and running errands.

ESCROW RECEPTIONIST - answering telephone and greeting customers.

ESCROW OFFICE ASSISTANT - assisting where needed with clerical duties.

Intermediate Position:

ESCROW ASSISTANT - Escrow Assistants (also called Escrow Technicians, including levels I, II or Junior, Senior) work directly with the Escrow Officer, helping ensure that all details related to sales transactions are accurate. They assist with processing all paperwork associated with escrow closings, real estate contracts, deeds, titles, and closing statements. They usually help audit closed files.

According to a representative of the California Escrow Association, escrow assistants can work their way up to Escrow Officer positions in one to three years, depending on ability and perseverance.

Principal Duties and Responsibilities:

• Assist Escrow Officer in the process of opening and closing of escrows.
• Answer basic escrow questions from customers.
• Provide general information (does not disclose confidential information).
• Handle incoming calls, and routes calls and messages as needed.
• Provides customer service to all customers.
• Communicates input from clients, lenders, etc., to the Escrow Officer, and documents information when appropriate.

Escrow Assistants may also:

• Open escrow orders talking all applicable information and input into the computer in an accurate manner.
• Order demands, orders update demands and follows up on delinquent request on a timely basis.
• Receipt in checks.
• Opens interest bearing accounts on a timely basis.
• Fills out recon tracking form.
• Prepares funding packages and directs them to the lender on a timely basis.
• Keeps open lines of communication with bookkeeping to ensure accurate information is being disseminated.
• Communicates wiring information to the Accounting Department in an accurate and timely fashion.
• Closes out the escrow file; generates appropriate checks and mails to the appropriate parties.
• Processes refund checks when necessary.
• Orders fire insurance.
• Draws documents with instructions in an accurate fashion, including Notes, Deeds of Trust, Subordination's, etc.
• Follows up all loose ends to ensure escrow closes on a timely basis and customer is provided with excellent service based on their needs.
• Maintains excellent organization skills with all files.
• Establishes a professional working relationship with all parties.
• Pays close attention to detail at all times, and exercising extreme care when inputting information to minimize errors and losses and maximize profits and service level.

Advanced Level Positions:

ESCROW OFFICER - Escrow Officers (including levels I, II or Junior, Senior) have the following responsibilities:

• Responsible for the final determination of accuracy of escrow documents, verification of receipt of monies necessary to close, and present for the signing of closing documents.
• Oversees all work performed by escrow assistant.
• Serves as the communication link to all parties involved in the transaction.
• Strives to profit excellent service in order to assure repeat and referral business.

Principal Duties and Responsibilities:

• Prepare escrow instructions.
• Request a preliminary title search to determine the basis upon which a title insurance policy may be issued.
• Request a beneficiary's statement or pay-off demand relating to existing financing.
• Comply with lender's requirements, specified in the escrow agreement.
• Receive purchase funds from the buyer.
• Prepare and secure the deed or other documents related to escrow.
• Prorate taxes, interest, insurance and rents according to instructions.
• Secure releases of all contingencies or other conditions as imposed on any particular escrow.
• Record deeds and any other documents as instructed.
• Request issuance of the title insurance policy.
• Close escrow when all the instructions of the buyer and seller have been carried out.
• Disburse funds as authorized by insurance, including charges for title insurance, recording fees, real estate commissions and loan payoffs.
• Prepare final statements for the parties accounting for the disposition of all funds deposited in escrow.

BRANCH MANAGER - Branch Manager (including Assistant Branch Manager) is a position to aspire to if you're interested in reaching management level. It means possessing all the abilities of an Escrow Officer, minimum number years (varies by company) of experience, and personnel management skills:

Principal Duties and Responsibilities:

• Promote customer loyalty, identify new customer contact base, and identify trends for area and oversee advertising efforts
• Oversee and monitor the recruiting, interviewing, assessing, hiring, training, and firing of branch personnel.
• Read and understand a branch profit-and-loss statement.
• Set goals for the branch: number of transactions, gross revenues, and maximum expenses to yield net profit.
• Create, follow, and adapt business plan to reach goals.

Escrow Education and Training

Other than in states where escrow licensing is mandated by law, there are no formal training requirements for becoming an escrow officer or assistant. However completion of escrow and real estate coursework can increase your knowledge overall resulting in better day-to-day performance. Many community colleges offer a variety of real estate courses including Escrow Principles, Real Estate Economics, and Real Estate Practices. Among escrow organizations offering education, the California Escrow Association (CEA) stands out. CEA has been instrumental in developing standards and increasing professionalism throughout the industry and founded the American Escrow Association (AEA) to provide training nationwide. CEA and AEA offer training and testing for existing escrow personnel leading to the following professional designations:

• Certified Escrow Officer (CEO)
• Certified Senior Escrow Officer (CSEO)
• Mobile Home Specialist (CMHS)
• Bulk Sales Specialist (CBSS)
• Certified Escrow Instructor (CE)
• Certified Escrow Technician (CET)

Characteristics of an Escrow Professional

Many readers wonder if they have the temperament or aptitude needed to work in the escrow field. Since escrow is a combination of customer service and detailed paperwork, the following is a summary of some of the characteristics needed:

• Strong organizational skills with the ability to handle multiple tasks and work under pressure with often short deadlines.
• Exhibit a high level of professionalism, confidentiality, with a positive attitude in appearance, manner of speaking, and over all demeanors. Courtesy and tact is a must.
• Professional customer service and communication skills.
• An ability to deal with customers with a caring and warm attitude, often having to handle difficult or demanding clients during a stressful time in their lives.
• High attention to detail, and mathematical computations.
• Knowledge of real estate procedures, local laws and customs, title search and examination procedures, recording procedures, interpretation of legal documents used in escrow extremely helpful.
• Must be able to type at least 45 wpm on the computer.
• Technically proficient in Windows, Microsoft Office applications (especially Word, Excel, Access, and PowerPoint) and other computer applications.

Sharon Hassler, adds:

"Don't be discouraged if you're having difficulty breaking into this industry. Education seems the most practical route, but other than in states that require licensing, taking classes won't magically open doors. In fact, many title, escrow, settlement and closing companies have their own in-house training programs. Call anyone you know in that profession or contact a company's human resources department and ask their advice. Consider taking the most basic entry level position, even a job in another department such as customer service, just to get on board. Think of the first couple of years as attending escrow/closing school and being paid for it. Learn all you can about every aspect of the business. If the company offers cross-training or education classes, take advantage of those opportunities. Excel at whatever tasks you are given, keep a positive attitude, express a desire to advance, take care of the customers-and you'll be noticed. Management is always on the lookout for outstanding employees, and stars are encouraged to shine in this industry. If you're given the chance, your performance will determine how soon and how high you rise.

"For an introduction to the real estate transaction and the escrow process as the customer sees it, try Sandy Gadow's The Complete Guide to Your Real Estate Closing. For the professional viewpoint, take her online course, The Nuts & Bolts of Escrow or All About Title Insurance & Escrow Closings. Either course will give you an idea of what lies ahead of you, and any industry-specific education courses on your resume will demonstrate your earnest desire to follow this career path."

*Escrow is also called real estate settlement or closing depending on what area of the country you're in. An escrow officer, settlement agent, closer or real estate attorney all may handle the same functions in a real estate transaction.

I hope this gives everyone a full insight of what we do. Have you hugged your Escrow Officer lately?