What are Escrow Instructions When Buying a Home in Carlsbad?
Once you have submitted your offer to the seller and, oh joy, have gotten it accepted, you will enter the escrow period which lasts until closing. This is a critical part of buying a home.
The seller will “open escrow” with the escrow company that’s been selected, and the escrow officer will provide you with an escrow number that identifies the escrow account and, if applicable, wiring instructions for you to wire your deposit in accordance with the contract normally within 3 business days after acceptance.
The escrow company is a third party, and neutral entity, whose role is to ensure all terms and conditions spelled out in the contract between you and the seller are followed correctly and in a timely manner. Escrow cannot make changes to the contract without the written permission of both parties.
Escrow safeguards the deposit, and all associated documents relevant to the transaction, collects the funds from your lender before closing, pays any bills and disburses funds (e.g., the proceeds from the sale to the seller) upon closing, and will allow title to convey to you only when all escrow provisions have been completed.
Soon after escrow opens you will receive the multi-page Escrow Instructions. (they may come to you via email, snail mail or both).
While much of this is boiler-plate, there are specific terms and conditions for your particular transaction (e.g., property address, purchase price, acceptance and closing dates, names of relevant parties, the Title Company, deposit and loan amounts, Home Warranty company and amount) that you should read carefully and ensure are correct before initialing and signing. If there are any questions be sure to check with your agent, or on some matters more appropriately with the escrow company.
You will also receive other documents to complete, including a Statement of Information, a Vesting Form (to state how you will hold title), and a Preliminary Change of Ownership Form.
Once completed, be sure to return to the escrow company, and keep a copy for your records.
Want to know about how to buy a home? Check out my video series on home buying tips and advice on my YouTube Channel.
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