Understand the Buying/Selling Process

A flowchart of a typical escrow

Shi-Ping Hsu • Jan. 4, 2008 2:30 PM

 

 Typical Flow of an Escrow

 

Seller Buyer
Market analysis, order zone disclosure, termite inspection
House on market
Buyer presenting offer
Look at houses to get a feel for what is available
Look seriously with intent to purchase
Presenting offer with initial deposit (usually 2-3% of the offered price in personal check)
Negotiating the offer (counter offer)
Reach agreement, open escrow
Both parties should have the following signed forms at the beginning of escrow
  1. Deposit receipt (form used to make the offer)
  2. Copy of counter offer
  3. All Disclosure statements
  4. Escrow instruction (signed and return to escrow as soon as possible)
Have city occupancy inspection
Fix items
  1. agreed in the escrow amendments
  2. indicated in the termite report (after loan approval)
  3. indicated in the occupancy report
Shop for homeowner protection




Final walk through
Escrow company will pay off the existing loan
Order home inspection (physical inspection)
Negotiate with seller the findings of home inspection, and make escrow amendments accordingly
Shop for lender and insurance companies
Submit the loan application (Please use the same name for loan, escrow, and grant deed.)
Loan approval
Inform escrow of your insurance company
Final walk through
Arrange moving company
Ask seller for tax bill
Three working days before close of escrow, deposit the balance of down payment into escrow with cashier’s check
Close of escrow, get the keys and Hallelujah!
Get net proceeds
Stop home owner insurance
Buyer should receive recorded grand deed, title policy and homeowner protection plan in a month.
If buyer doesn’t receive the new tax bill by early October, call county office.

Prepared by J.C. Hsu, Coldwell Banker
(626) 535-2946 (Office)
(626) 318-4391 (Cell)