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Seller Escrow Steps

 

You’re in Escrow, Now What?

Here are the basic steps of escrow:

  1. Good Faith Deposit — The deposit – typically 3% of the purchase price – is due within 3 days of opening escrow. The deposit is refundable, if your buyer properly exercises their contingencies.
  2. Inspections – Unless otherwise negotiated, the buyer typically has 7-10 days to inspect the property. Start with a general home inspection, and let the home inspector let you know if he recommends other inspections. Common additional inspections include sewer, chimney and foundation inspections. You may receive a Request for Repairs.
  3. Loan – The loan process runs concurrent with the entire escrow. The Schulman Team handles coordinating the loan with the buyer, lender and escrow.
  4. Appraisal – The lender will order the appraisal at the outset of escrow, and we’ll make sure to make sure the appraiser gets in to the property. We send our own appraiser to help justify the value for the lender’s appraiser.
  5. Retrofit – If applicable, we have a 3rd party company come to the house and insure that the property meets the minimum safety standards as dictated by the city. The repairs are made prior to the close of escrow, and you are handed a certification for your records.
  6. Disclosures – You must provide the buyer with disclosures for the property based on what you know about the property that could be a material defect that affects the value of the home.
  7. HOA – If you’re selling a PUD, condo, or house with an HOA (Homeowners’ Association), we help the HOA provide disclosure about the condition of the HOA, including meeting minutes, financial statement, and any other internal documents. You are required to disclose anything you know about the HOA.
  8. Termite Inspection – Typically the seller arranges for and pays for a 3rd party company to inspect the property for termites, and provide a clearance for you, and for the lender. Typically the seller covers “Section 1” termite work, which is actively infested areas of the property. Most homes in Los Angeles have a good amount of termite work to be done.
  9. Loan Docs – A few days before the close of escrow, the buyer will get loan documents from the lender. Escrow will arrange a time to sign at your convenience. Once the buyer signs, they are handed information on wiring the balance of the down payment and closing costs to escrow. Typically the loan funds 1-2 business days after signing, and you record escrow the next business day at 5pm.
  10. Keys – At 5pm on the day of close of escrow, you turn over keys and access to the property. Your money is sent to you in the manner arranged with escrow.