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What are Escrow Instructions When Buying a Home in Carlsbad?

By
Real Estate Agent with eXp Realty of California, Inc. CA DRE #01490977

What are Escrow Instructions When Buying a Home in Carlsbad?

 

What are escrow instructionsOnce 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.

 

depositEscrow 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.

Posted by

Jeff Dowler, CRS
Certified Residential Specialist / Realtor®


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Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good evening Jeff Dowler ,

We close with Title companies here in Austin. I love how it's done..no Brokerage holding money... no attorneys..clean..easy peezy way to have the title company hold all the funds and disperse everything. Good explanation of how it works in  Carlsbad!

Sep 19, 2016 11:39 AM
Hella M. Rothwell, Broker/Realtor®
Carmel by the Sea, CA
Rothwell Realty Inc. CA#01968433 Carmel-by-the-Sea

Jeff Dowler - There is nothing like a good escrow company. But let me tell you, they are not all alike. Pick one that is very service oriented.

Sep 19, 2016 12:05 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Dorie Dillard 

I bet it works much the same, and normally things go very smoothly, at least with a great escrow officer! It's a confusing process for buyers if they are new to it, and there is a lot of paperwork to review.

Jeff

Sep 19, 2016 12:28 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Oh my Hella M. Rothwell, Broker/Realtor®  You are SOOO right on target.

A great escrow officer makes all the difference . A bad one can make mistakes, not respond in a timely  manner, and make you feel like you constantly have to check and verify things or ask for updates. It's critical to the process to have a great escrow company and officer that you can trust!

Jeff

Sep 19, 2016 12:31 PM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Jeff- very good explanation of how escrow is handled in CA.  Anyone new to buying a home will appreciate this information. 

Sep 19, 2016 12:32 PM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

I find it so fascinating to read about how the process works in other states.  I think you rely on escrow companies the way we do good closing attorneys in Georgia. 

Sep 19, 2016 12:48 PM
Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

Excellent post Jeff Dowler . I have noticed that the laws and customs are different from state to state. This is information that people need to know.

Sep 19, 2016 12:49 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Thanks Kathy Streib  - It can be a confusing process in terms of what escrow does

Tammy Lankford, I'd say that's pretty true. Normally no attorneys involved here, at least as far as closing are concerned

Jeff

Sep 19, 2016 03:09 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Noah Seidenberg 

Things defintely vary from state to state. It was very different back in MA, and MN was different yet again

Jeff

Sep 19, 2016 03:10 PM
James Dray
Fathom Realty - Bentonville, AR

Good morning Jeff.  Well here the title company does all of that for us. One stop and we're done. Interesting how it changes from state to state

Sep 19, 2016 06:51 PM
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

Excellent information for anyone buying a home in Carlsbad!

Sep 19, 2016 11:37 PM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Jeff Dowler - Where would we be without a smart and efficient escrow officer? Nice post to share with buyers and sellers who don't understand how important this step is. 

Sep 20, 2016 12:21 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

James Dray  - it really does vary quite a bit. However it works, it's important for buyers and sellers (and agents!) to understand.

Thanks Sharon Tara . It can be confusing if you are from another state where things are done differently.

Jeff

Sep 20, 2016 12:24 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Sheri Sperry - MCNE 

A smart and efficient escrow officer is essential. Those that know their job and do it well, and communicate, are a dream to work with.

Jeff

Sep 20, 2016 12:25 AM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

We also close at title companies but this is good information to share so buyers and sellers will be informed.

Sep 20, 2016 12:57 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hi Jeff -- having the right partners in this business is so important and escrow is definitely a key player in the transaction.  Nice information especially for those relocating from another area.  

Sep 20, 2016 12:57 AM
Belinda Spillman
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!

Boy things sure do vary between states.  Out here, we use title companies and fund at the closing table with all parties typically present.  We execute Closing Instructions which allows the title company to handle the transaction.

I love this series you are doing.  It really helps folks understand the real estate process as they get ready to purchase their dream home.

Sep 20, 2016 01:07 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Debbie Reynolds  - it can be a confusing process and buyer should understand how it works.

Michael Jacobs  Escrow is definitely a key player in the process.

Jeff

Sep 21, 2016 09:53 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Belinda Spillman 

Thanks so much. There's a lot to know and I think buyers can really get overwhelmed by all the paperwork!

Jeff

Sep 21, 2016 09:54 AM
Anonymous
Janice Roadee

Invaluable piece ! Incidentally , others are wanting a a form , my company edited a sample form here https://goo.gl/fdMHaB

Nov 10, 2016 03:13 PM
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