Top Q: What is Escrow?
In many states, buyers and sellers hire attorneys to complete a real estate transaction. In California, attorneys are not necessary. Instead Escrow Companies, regulated by the California Department of Corporations, work for both the buyer and seller to insure that the purchase contract is properly executed. The Escrow Company translates the purchase contract between buyer and seller into escrow instructions. When both buyer and seller have signed the instructions, escrow is opened. The Escrow Officer will collect the monies, documents, and deeds. Once all conditions of the purchase contract have been satisfied, the Escrow Officer instructs the Title Company to record the deed in the buyer’s name. After recording is confirmed, closing statements are prepared, funds are distributed, and escrow is closed.
