Who Does What in the Escrow Process?
The Seller and Seller’s Broker
• Delivers a fully executed purchase and sale agreement to the escrow agent.
• Executes the paperwork necessary to close the transaction.
• Deposits any amendments to the purchase and sale agreement.
The Buyer and Buyer’s Broker
• Deposits funds required to close, in addition to the purchase price, with the escrow agent.
• Approves the inspection reports, commitment for title insurance, or other items as called for by the purchase and sale agreement.
• Fulfills other conditions specified in the purchase and sale agreement.
The Lender (if applicable)
• Deposits proceeds of the loan.
• Directs the escrow agent of the conditions under which the loan funds may be used.
The Escrow Agent
• Obtains the order for title insurance.
• Obtains approvals from the buyer(s), the commitment for title insurance, and any other inspections that are called for in the purchase and sale agreement.
• Obtains any required payoffs/release documents to clear title.
• Receives funds from the buyer and/or lender.
• In most cases, prepares vesting documents and excise tax affidavit on seller’s behalf.
• Prorates insurance, taxes, rents, etc.
• Prepares a final statement (commonly referred to as the “HUD 1 Statement” or “Settlement Statement”) for each party, indicating amounts paid in conjunction with the closing of the transaction.
• Oversees the signing of loan documents.
• Forwards deed to the county for recording.