Escrow Services

Why do I need an escrow company?

Who pays for the escrow fee?

As the buyer, when will I know how much money I will need in order to close?

Can we provide escrow with a personal check?

Why is title insurance required and who pays for it?

When should I, as a seller, stop making loan payments on the current loan which is being paid off?

When will I receive the proceeds from the sale?

Who will transfer the utilities?

How do I get a copy of my appraisal?

When will I be notified to sign my closing documents?

Who do I call if I have any questions?

Why do I need an escrow company?

An escrow company's role in a real estate transaction is to act as an independent, neutral third party to facilitate the transfer of ownership of real estate from the seller to the buyer. The escrow company communicates with the real estate agents and the buyer's lender to gather all of the necessary information and documentation to close the sales transaction. This involves collecting and disbursing all the funds involved. The recording of the legal documents is also the responsibility of the escrow company.

Who pays for the escrow fee?

Most Residential Real Estate Purchase and Sale Agreements indicate that the cost of the escrow fee is to be split equally between the buyer and seller. If the buyer is obtaining an FHA or VA loan, then the escrow fee will be based on the then-current FHA and VA regulations. Our escrow fee includes any notary fees, copying of documents, or fax charges. In order to expedite a closing in a timely matter, your transaction may require couriers, overnight mail services, or wire transfers. If these services are required, these fees will be charged to you.

As the buyer, when will I know how much money I will need in order to close?

We will contact you with the amount of money needed to close your transaction shortly after we have received your loan documents from your lender. We will calculate your loan fees and other closing costs and notify you with the final amount needed when we contact you to make your signing appointment.

Can we provide escrow with a personal check?

We are unable to accept personal checks. We can accept a cashier's check from your bank payable to Brandt Law Group. If you prefer, you can contact your bank and request a wire transfer directly to our trust account. Please advise us if you intend to have the funds wired and we will provide you with our bank's routing information.

Why is title insurance required and who pays for it?

Most Residential Real Estate Purchase and Sale Agreements require that the seller provide a clear standard owner's title insurance policy, which is to be purchased by the seller. In some transactions, the buyer agrees to pay for the standard title insurance policy. The purpose of the title insurance is to prove to the buyer that the seller is the legal owner of the property and that the seller is able to sell the property. The title company chosen, as agreed upon by the buyer and seller, will research the county records for everything recorded against the property. Brandt Law Group strongly advises that buyers obtain a title policy for every real estate transaction.

The buyer's lender will require a separate lender's title insurance policy for themselves. This policy insures that they will be put in a first lien position at the time of closing. This policy is usually paid for by the buyer as a normal closing cost, although sometimes this cost is shifted, through negotiation, to the seller.

When should I, as a seller, stop making loan payments on the current loan which is being paid off?

We advise that you continue to make your loan payments as they come due. If there is a delay in the closing, we do not want you to incur a late charge from your lender. You can inform us that you have made an additional payment and we will contact your lender to obtain a new written payoff statement from them.

When will I receive the proceeds from the sale?

Funds are usually available to the seller in the afternoon on the day of closing. We cannot release funds until confirmation of closing. Closing occurs when the lender's loan proceeds have been deposited into our trust account and the county has recorded the deed. We will notify the seller immediately when the seller's funds are available. Seller proceeds are available by either check or wire. Arrangements regarding the form of the disbursement are usually made at the time of the signing appointment. If the seller needs the proceeds to go to a different escrow company for a new home purchase, we will wire those proceeds to the account of that escrow company as soon as funds are available to wire out.

Who will transfer the utilities?

The Residential Real Estate Purchase and Sale Agreement will indicate if we will be collecting funds from the seller at closing to pay the seller's final utility bills. If escrow is required to pay the final bills, within a day or two of closing we will ask you for meter readings regarding water and electrical services. Once we have received the meter readings, we will contact the public utility companies and have the final bill sent to us. The utility company has three days to respond to our request, so often we receive a statement after closing. In such a case, we will hold back an estimated amount from the seller and refund any unused funds a few days after closing. We are only required to pay the final public utility bills. Some utility companies are private, such as Puget Sound Energy and Waste Management. The seller will have to contact them directly to obtain the final bill. Escrow is not required to hold back funds for private utility bills. The buyers are responsible for contacting the utility companies to set up their new accounts.

How do I get a copy of my appraisal?

An appraisal is not required to close your sales transaction. The buyer's loan officer orders the appraisal and is who you should contact in order to obtain a copy of the appraisal.

When will I be notified to sign my closing documents?

As soon as we receive the buyer's complete loan document package from the lender, we will call all parties to the transaction. we will usually be contacting you three or four days before the closing date. We will make separate appointments for the buyer and the seller. The seller's appointment can run between fifteen and thirty minutes. The buyer’s appointment will be longer and could take up to ninety minutes.

Who do I call if I have any questions?

You can rely on us to answer most of your closing questions. You can also call your real estate agent. If you have any questions concerning your loan payments or loan costs you should contact your loan officer.