Escrow Process
Obligations of The Buyer
· The buyer must deposit their good faith deposit with the escrow holder within three business days
of acceptance of their offer. Typically, this is a wire transfer for the amount of three percent of the
purchase price.
· If the buyer has not been pre-approved with a lender, the buyer must start the loan process by
filling out loan application forms, and providing a check for the cost of the appraisal. In addition, the
buyer can expect to provide the lender with tax returns, paycheck stubs, bank statements, and a
source of funds for the down payment.
· Within the first two weeks the buyer is strongly encouraged to have the property inspected by
professionals to determine its physical condition and any geological problems. Different soil types,
mountainous terrain and the 1994 San Fernando Valley earthquake make this extra important. The
seller must also disclose any problems with the house that they are aware of. This is done on a form
called the Transfer Disclosure Statement.
· The buyer must provide the seller with a list of items that come up in the inspection process and
note which conditions they want the seller to remedy prior to the close of escrow. The buyer and
seller generally go into a round of negotiating to determine what items the seller will fix if any.
· Within five days of the close of escrow, the buyer should go back to the home to determine that the
seller has taken care of all the items they agreed to do, and confirm the property is in the same
general condition it was in when the offer was made.
www.1613Fifth.com
· Prior to the close of escrow, the buyer will go into the escrow office and sign all the loan
documents that spell out the terms and conditions of the buyer’s new loan. The buyer generally
brings in a cashiers check for the balance of their down payment at this time.
Sheri Fejeran
310.702.6999
Julie Lyon
310.345.1239
1300 Highland Av Suite 101
Manhattan Beach, CA 90266