What Each Party Does in the Escrow Process 

The Seller 

• Deposits the executed deed to the buyer with the Escrow Holder. 

• Deposits evidence of pest inspection and any required repair work. 

• Deposits other required documents such as tax receipts, addresses of mortgage holders, insurance policies, equipment warranties or home warranty contracts, etc. 

The Buyer 

• Deposits the funds required, in addition to any borrowed funds, to pay the purchase price with the Escrow Holder. 

• Deposits funds sufficient for home and Title Insurance. 

• Arranges for borrowed funds to be delivered to the Escrow Holder. 

• Deposits any deed of trust or mortgages necessary to secure loans. 

• Approves any inspection reports, Title Insurance commitments, etc. called for by the purchase and sale agreements.

• Fulfills any other conditions specified in the Escrow instructions.

The Lender (If Applicable)

• Deposits proceeds of the loan to the purchaser. 

• Directs the Escrow Holder on the conditions under which the loan funds may be used. 

The Escrow Holder 

• Opens the order for Title Insurance.

• Obtains approvals from the buyer on Title Insurance reports, pest and other inspections. 

• Receives funds from the buyer and/or any lender. 

• Prorates insurance, taxes, rents, etc. 

• Disburses funds for Title Insurance, recording fees, real estate commissions, lien clearance, etc.

• Prepares a final statement for each party, indicating amounts to be disbursed for services and any further amounts necessary to close Escrow.

• Records deed and loan documents, delivers the deed to the buyer, loan documents to the lender and funds to the seller, closing the Escrow. 

Freedom Title Company, Inc.

Why do I need title insurance?

What is an Escrow and why is it needed?

Who May Hold Escrows?

Escrow Instructions

Closing the Escrow