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What Is Escrow On A House? - YouTube
Channel: Horizon Real Estate & Probate and Trust Help
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what is escrow on a house? That's what
we're talking about today and we're
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getting started right now.
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~MUSIC~
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hi, I'm Kim
Ward real estate broker in beautiful San
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Diego California with Horizon Real
Estate. I'm an expert at helping executors
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administrators and trustees with
homes in probate or a trust. If you're
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new here welcome and please feel
comfortable subscribing... and to get
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notification of my weekly videos just
hit the bell button.
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What is escrow on a house? escrow is
basically a middleman a third party that
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handles the sellers information and
the buyers information when selling and
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purchasing a home for real estate
transactions. The escrow fee is basically
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$2 per $1000 plus $400. In San Diego
buyers and sellers typically share the
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cost of escrow 50/50, the buyer pays their
part and the seller pays their part.
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So that you're aware of what your cost will be to pay escrow and all your other fees
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I always do an estimated seller proceeds
document at our initial consultation.
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So again escrow is the hub of the wheel,
so to speak, When we get involved in a
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real estate transaction. Escrow is a
neutral third party that will handle all
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of the monies that become involved in
the transaction including the first
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money that comes into escrow, the
buyer's earnest money deposit. They also
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make sure that the conditions of the
contract along with your real estate
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agent are followed and this process
lowers the potential of fraud.
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To meet an escrow officer I have a short video
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Hi, I'm Carolyn Church senior officer here at Ticor title company
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and this is my team... I'm Cheralyn Preciado and
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I'm Patty McMurtry. The role of escrow in a real estate transaction is to be the
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neutral third party to handle documents
and money.
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We interact with all the parties to the transaction including the
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seller, the buyer, the listing agent, the selling agent, and the lender.
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We're here to make the transaction flow smoothly
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Once purchase agreement has been negotiated and all
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parties are in agreement, then I will
open escrow as your listing agent.
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my team will email the purchase agreement along with a transaction cover sheet to
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all of the parties involved including
the buyers lender that way everybody is
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on the same page together. So that's
opening escrow, the next step will be
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escrow will assign an escrow number and
then they will contact all of the
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parties involved to get all their
information that they haven't already
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received, Then they'll start working on
escrow documents. The escrow documents
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follow the terms in the purchase
agreement. I mentioned earlier about the
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buyers earnest money deposit
whenever I'm helping a seller I will put
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in a counter offer, to the purchase
agreement, that the buyer is to either
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wire their earnest money deposit, which
is typically 1% of the purchase price, or
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they will take in a cashier's check. I do
this because a personal check can take
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upwards of 10 days to clear and I want
to make sure the buyers have the earnest
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money deposit actually in escrow. Next
your escrow officer will draft those
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escrow documents and then they'll send
them to the listing agent to review them
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and make sure that everything is correct
according to the purchase agreement.
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There are times even today I was looking
over the draft escrow instructions and
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the escrow company had missed that I had countered out giving the buyer a $500
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home warranty, so that had to be
corrected before those documents were
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printed and sent to the buyer and the
seller. This is an example of your escrow
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documents they'll come in the mail in a
big envelope and you'll open them up and
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you'll immediately feel overwhelmed.
Please don't panic, all you need to do is
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reach out to your escrow officer with
any questions you have they'll walk you
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through each one of the documents
including the grant deeds that need to
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be notarized. If you live in the same
city as your escrow company you can
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simply go in to your escrow and they'll
walk you through all the document
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and they can notarize items that need
notarized. If you're outside of that city
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escrow can schedule to have a mobile
notary come to you... some of my clients
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choose that method, it's usually around
$200, and it's convenient. They can come
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into your home or your office whatever
you prefer or you can take the documents
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that need to be notarized to your local
notary or your bank. So after 21, or up to
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45, days whatever is in your purchase
contract
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once everything is satisfied after lots
and lots and loads and loads of
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paperwork escrow will close. Once escrow closes, typically within about 24 hours
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or the next business day if you happen
to close on a Friday, the seller will
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receive their proceeds.
I recommend that sellers give wiring
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instructions to escrow and just have the
funds wired. On occasion a client may
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want a check and that can be sent also,
but it's going to come by mail and again
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it's going to take up to 10 days to
clear, so wirings your better option.
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That's the basics of escrow. If you have
any questions or comments about escrow
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please feel comfortable commenting below, and again to be notified of my weekly
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videos please just hit the bell button,
and I look forward to seeing you on the
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next one bye.
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~Bloopers~
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