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Find out what to look for during the process of escrow.

When you’re in the process of buying or selling a house, you’ll experience how escrow plays a significant role. By allowing finances to be handled smoothly and safely, you can rest easy knowing that the transaction has been managed by a professional and neutral third party.

Run through escrow smoothly with these steps.

Have a solid contract – The sales contract or purchase agreement is the blueprint for the joint escrow instructions and guide the buyer and seller through the process. The real estate agent or attorney typically write the contract. The contract should clearly state the terms of the deal and what must occur before escrow closes. Ensure that your contract details everything from start to finish.

Have clear contingencies – Contingencies are contractual conditions that must be met before the contract becomes official. Inspection, appraisal, and financing are common examples, although contingencies can be written for any issue. Once each criterion is completed, the buyer will sign a contingency removal document to remove the contingency from the contract.

Review title reports – Review the preliminary title report to verify the legal description of the property and learn about any liens or issues surrounding the property’s title to make sure that the title is clear prior to transfer.

Be prepared on closing day – Three days prior to closing day, the buyer will review and make sure they understand their closing document. To sign loan documents, we suggest buyers bring a positive mindset and plenty of time. If documents were not as you intended or there are anomalies, wait until they are corrected to sign. Once all paperwork is signed, the buyer will deposit or wire their final closing funds. Be vigilant to avoid wire fraud, talk directly to an escrow officer who is specifically assigned to your transaction before you transfer any money! Once the property is officially recorded, the property is closed and the buyer is the new owner!

Whether you’re in the process of searching for your dream home or are getting ready to prepare your home for the market, get the help of a professional real estate agent. To get started, contact Jenn Blake Real Estate Group at Pacific Sotheby’s International Realty in San Diego, California at 858-663-6788.