The term "escrow" means any agreement between two or more parties (principals) wherein the delivery of instruments, monies, items of value, or evidence of title to real or personal property are deposited with a 'NEUTRAL' third party, (the escrow agent). This agreement contains specific written instructions executed by all parties to the transaction.

Other parties may be brought into the escrow by virtue of the instructions and requirements of the buyer and seller, i.e., the lender, lien holders, contract vendors, etc. In order for the seller and buyer to complete the transaction it may be necessary to receive money and documents from these other parties. These other parties will deposit their items of value into the escrow along with their written instructions which confines the items to the escrow until their conditions have been met. The escrow fee is usually split between the buyer and seller but this can be changed by an agreement of the parties.

Some of the functions performed by the escrow agent to close a real estate transaction are listed below:

• Receive a completed and fully executed purchase and sale agreement and/or lenders instructions.
• Order and deliver a commitment for title insurance to the parties of the transaction.
• Order all necessary payoff statements and demands to clear the title.
• Prepare all necessary documents to transfer title.
• Prepare the estimated and final closing statements.
• Obtain all necessary signatures, funds and documents to close the transaction.
• Record and deliver all necessary documents and disburses the funds according to the parties and/or lenders instructions.

For additional information please contact our Escrow Manager: Heather Shurtleff - hshurtleff@firstam.com.