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sellers
life of an escrow

the process and how it works

the active team is here for you every step of the way

Earnest Money Deposit

The earnest money deposit (amount agreed upon in contract) is due within 3 days of opening escrow. The deposit is refundable if the buyer properly exercises their contingencies.

Disclosures

You must provide the buyer with disclosures for the property. This includes anything you know about the property that could be a material defect that effects the value of the home. At this time you will also provide disclosures about your HOA, if applicable.

Home Inspection

The buyer will typically have the home inspected. If you have not already, immediately install a Carbon Monoxide (CO) detector on each floor of the home. Also, ensure that all smoke detectors are working, and the water heater is double-strapped to code.

Appraisal

The lender will order an appraisal at the beginning of escrow. We will coordinate with you to make your home available for the appraisal inspection. The inspection will typically take 1 hour.

Repair Negotiations

You may or may not receive a request for repairs from the buyer. Typically the requests are kept to health/safety/code issues and excessive damage. Repairs will be negotiated within the first 17 days of the escrow period.

Termite Inspection

The seller typically arranges for and pays for a 3rd party company to inspect the property for termites. Whether or not the Seller provides clearance and completes work will depend upon upfront negotiations.

Loan Process

The loan process runs concurrent with escrow. The buyer has 21 days to receive loan approval.

Remove Contingencies

The time frame for loan approval is 21 days, and 17 days for everything else. The buyer will be asked to remove contingencies at this point. Once contingencies are removed, the initial deposit is at risk if there is a breach of contract.

Sign Loan Documents

A few days before the close of escrow, the buyer will receive loan documents from the lender. Escrow will arrange a time to sign at your convenience. Typically the loan funds 1-2 business days after signing, and you record escrow the next business day at 5pm.

Misc. Documents

Most of the paperwork is handled at the beginning of escrow, but there are always a few documents that need to be signed throughout the transaction. Please sign them as you receive them in order to keep the process moving forward.

Final Walk Through

A few days before the close of escrow, the buyer will do a final walk through to confirm that any agreed upon repairs have been completed, and that the home is in the same condition as when they initially made their offer. The buyer may or may not request your presence.

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