Southern California Real Estate by Phil McCollum

Understanding the Escrow Process...

Do I Really Need to Use an Escrow? And Why?

The process of buying and selling a home requires the exchange of valuable assets and buyers and sellers both feel more comfortable when a third party is present to oversee the deal and make sure everything is handled fairly.

What Exactly Is An Escrow?

An escrow occurs when a neutral third party holds the documents and monies involved in a real estate transaction and ensures that all conditions of the transaction are met. Escrow also refers to a special account that a lender establishes to hold monthly installments from the borrower to cover property taxes and insurance.

An escrow holder is a neutral third party who takes instructions based on the terms of the real estate transaction and, when necessary, the lender’s requirements. It then becomes the job of the escrow, through the escrow agent handling the deal, to get paperwork drawn up and signed, and to collect the required funds and hold them until the closing.

What Are The Duties Of The Escrow Holder?

* Receive and hold all documents, instructions, and monies pertaining to the real estate transaction.

* Serve as the communication link and liaison between all parties, requesting required information and obtaining necessary signatures.

* Request a preliminary title report to assess the status of title to the property.

* Request a beneficiary statement or payoff demand from existing lenders as part of the loan process.

* Hold inspection reports, deeds, and insurance documents.

* Comply with the lender’s requirements in its instructions to escrow.

* Prepare or obtain the grant deed.

* Prorate taxes, interest, insurance, rents, and other costs related to the property.

* Release the deed and other documents.

* Request the title insurance policy.

* Close the escrow in accordance with the instructions of the buyer, seller, and lender.

* Disburse funds as authorized by the escrow instructions, including real estate commissions, loan payoffs, title insurance, taxes, recording fees, and other costs.

* Prepare final statements of disposition of all funds.

As both buyer and seller benefit from the usage of an escrow, it is customary for the escrow fee to be split between buyer and seller.

You may use one of the escrow companies in the sidebar to the right, or choose your own. For residential real estate transactions, the escrow process is clearly defined and the paperwork is standardized.

Escrow Companies

Escrow Companies – Long Beach

Anchor Seaport Escrow
5602 E 2nd Street
Long Beach, CA 90803
562-434-4437
www.anchorseaport.com

Cardinal Pacific Escrow Inc
6615 E Pacific Coast Highway, Suite 240
Long Beach, CA 90803-4224
562 493-9393
www.cardinalpacific.com

A-List Escrow
5500 E 2nd Street
Long Beach, CA 90803
562-987-2547
www.a-listescrow.com

Escrow Companies - Torrance

Pacific Cove Escrow
2790 Skypark Dr # 220
Torrance, CA 90505
310-530-6800‎

Peninsula Escrow
23740 Hawthorne Blvd # 102
Torrance, CA 90505
310-373-7495‎

Aquamist Escrow Inc
23440 Hawthorne Blvd # 100
Torrance, CA 90505
310-530-0440‎

Escrow Companies - Palos Verdes

Peninsula Escrow
www.penescrow.com

Rancho Palos Verdes:
28901 S. Western Ave #129
Rancho Palos Verdes CA 90275
310-514-1451

Malaga Cove:
57 Malaga Cove Plaza
Palos Verdes Estates CA 90274
310-373-1063

Silver Spur:
734 Silver Spur Rd #104
Rolling Hills Estates CA 90274
310-541-9664

Let Me Help with Your Escrow Fees

The cost of your escrow is dependent on the size of the home. Listed below is a simple formula that will give you a good idea on the cost.

Escrow Fee = $200 + $2 per $1000 of sales price

As an example, for a $400,000 home, this comes to $1000.

To give you a little break on your escrow, I’ll provide $150 toward your closing costs (of which your escrow fee is one). It’s just a token of my appreciation for recommending me to your friends, neighbors, and family members, and allowing me to assist you with your real estate buying and selling activities.

Receive $150 savings on your escrow, and more bonuses. Register on my Buyer or Seller page.

Phil McCollum realtor in Southern California

Phil McCollum's Real Estate Information Site

Phil McCollum realtor in Southern California contact info ==>562.225.5234

Serving the communities of the South Bay and Long Beach, including Rolling Hills, Rolling Hills Estates, Palos Verdes Estates, Rancho Palos Verdes, Torrance, San Pedro, Carson, Hermosa Beach, Redondo Beach, Manhattan Beach, Long Beach, Lakewood, and Signal Hill.

Broker/Agent does not guarantee the accuracy of the square footage, lot size or other information concerning the conditions or features of properties provided by the seller or obtained from Public Records or other sources as presented in this website. Interested parties are advised to independently verify the accuracy of all information through personal inspection and with appropriate professionals. Information herein deemed reliable but not guaranteed.