What Do Title and Escrow Companies Do?
- Once a San Diego buyer and sell come to an agreement, paperwork becomes the driving force that moves the process along. When the purchase of a San Diego home involves a bank or lender to partially finance the purchase, the title and escrow companies coordinate all the documentation. San Diego escrow companies have the responsibility of administering the agreed upon terms of a purchase agreement and securing whatever funds and documents involved in the transaction until the sale is complete.
- In San Diego, the escrow account handles monies or documents once a San Diego home has been sold. This includes the actual cost of the home, title and escrow companies’ services, as well as fees charged by the lender. The escrow account holds these payments until the terms of the purchase agreement have been fulfilled. The San Diego escrow company protects the interests of buyers, sellers and the lending institution.
- Steps are taken to ensure that a potential buyer will have full ownership in the San Diego property. When a buyer applies for a home mortgage, the title company researches the property title to determine whether any liens, lawsuits or mortgages exist or have been placed against the San Diego property.
- San Diego real estate sales involving a lending institution typically requires additional searches to determine if any lawsuits placed against a seller can affect the seller’s actual ownership of the property. The escrow company needs to be sure that the title company does their job to settle existing discrepancies, if possible, and ensure the title is cleared for the official sale of the San Diego home.
- Escrow closing is the final stage of the sale of a San Diego home. The final closing statement known as the HUD-1 settlement statement details all of the costs. These costs include title transfer fees, title recording fees, realtor fees and closing costs that pertain to the sale of the home. This settlement statement will be reviewed for accuracy and then signed by the buyer and seller. Then the title company issues the payment to the seller and finalizes the settlement statement, which closes the sale of the home.