Immediately
after signing the purchase contract, all funds
and documents are delivered to the escrow holder.
The deal is almost final at
this point-but homes can fall out of escrow for
various reasons. Before my clients get
to the escrow process, I try to anticipate and
address any obstacles that may arise.
As you likely recall, the escrow
holder is a neutral go-between that has a legal
obligation to safeguard the interests of everyone
affected by the outcome of the transaction.
Ordering
preliminary title report
Requesting
loan payoff information
Obtaining
loan documents from buyer’s lender
Obtaining
documents to clear any liens against the property
Issuing receipts for documents that are
deposited
Prorating
taxes, interest, association fees, etc.
Holding
and distributing funds
Recording
necessary documents such as deeds of trust,
powers of attorney, reconveyances, etc.
Preparing
estimated and final closing statements
Delivering
the proceeds
If you sell your home for
a profit, you may legally avoid paying income
tax on your profits if you meet certain IRS and
State requirements. Check with your accountant
or tax attorney for professional advice.
