What Each Party Does In Escrow
• Deposits the executed deed to the buyer with the settlement agent.
• Deposits evidence of pest inspection and any required repair work, if applicable.
• Deposits other required documents such as tax receipts, addresses of mortgage holders, any state or federal required
• Deposits the funds required, in addition to any borrowed funds, to pay the purchase price with the settlement agent.
• Deposits funds sufficient for home and title insurance.
• Arranges for any borrowed funds to be delivered to the settlement agent.
• Deposits any deed of trust or mortgages necessary to secure loans.
• Approves any inspection reports, the Preliminary Report for title insurance, etc., called for by the purchase and sale
• Fulfills any other conditions specified in the instructions.
The Lender (if applicable):
• Prepares loan document package for buyer/borrower.
• Deposits proceeds of the loan with the settlement agent.
• Directs the settlement agent on the conditions under which the loan funds may be used.
The Settlement Agent:
• Opens the order for title insurance.
• Obtains approvals from the buyer on the Preliminary Report/ Title Commitment, pest and other inspections.
• Receives funds from the buyer and/or any lender.
• Prorates taxes, rents, etc.
• Disburses funds for title insurance, recording fees, real estate commissions, lien clearance, etc.
• Prepares an estimated statement or HUD settlement statement, as required, for each party, indicating amounts to be
disbursed for services and any further amounts necessary to close.
• Records deed and loan documents, delivers the deed to the buyer, loan documents to the lender and funds to the seller,
closing the escrow.
• Issues final closing statement/HUD settlement statement and forwards to buyer, seller and lender.