Escrow Process
Escrow is the deposit of documents and funds with a neutral third party (the escrow company) with
specific instructions as to how they should be disbursed. Escrow acts as the clearinghouse for the
exchange and distribution of those documents and funds in connection with the transfer or financing of
real estate. The services of a qualified escrow agent, assures all interested parties that the rules and
regulations governing real property transfers will be strictly observed by a neutral third party with an
objective interest in completing the transaction.
The easiest way to understand the process is to delineate the obligations of each party in the real estate
transaction.
Obligations Of The Seller
· The seller must provide the buyer with detailed disclosures that will reveal to the buyer any problems or
adverse conditions that the seller is aware of. In addition, the seller must provide the buyer with a natural
hazard disclosure report. This report is prepared by companies that check local records and maps to
determine if the real estate is in an earthquake fault zone, a flood zone, an area of potential landslides, a
high fire area, an area of potential liquefaction and other zones that might affect the desirability of the
property. It is not uncommon for homes in the San Fernando Valley to be located in several zones.
· Making the home available for the buyer’s physical inspection, geological inspection and lenders
appraiser is also required.
· The seller must have a licensed termite company inspect the property and the seller is generally
responsible for insuring that any termites or wood destroying fungus or dry rot is taken care of prior to
the close of escrow.
· The escrow company will have a number of documents to be filled out and sent back to escrow.
· The seller may be responsible for making repairs to items discovered in the buyer’s professional home
inspection. The items to be repaired or replaced will be negotiated between the buyer and seller after the
inspections are complete.
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· The seller is responsible for maintaining the property in the same condition it was in when the buyer
made the offer on it.
Sheri Fejeran
310.702.6999
Julie Lyon
310.345.1239
1300 Highland Av Suite 101
Manhattan Beach, CA 90266