Sometimes the openings of an escrow transaction can lead to some “unwanted Surprises”. In order to avoid any future issues, and to allow for a smooth closing process for your transaction, below are some “tips and tricks” that may be useful:
- Before going to your listing appointment, be prepared and stand out from everyone else. Order an estimated statement of fees/settlement statement from your escrow officer to take to your listing appointment so that your clients will have an idea of the costs associated with the sale of their property. This will also provide them with an idea of what their “net proceeds” will be at the end of the transaction.
- Order the property profile or the “legal and vesting” for the subject property. READ HOW TITLE IS HELD and confirm that your sellers are the actual parties that can sign all the documents for the sale of the property.
- Always pre-order the preliminary title report from the title company upon taking your listing. This will allow you, escrow, and title to address any special needs that will need to be addressed for your escrow transaction.
- Prepare your buyers! Always let your buyers know that the initial deposit funds AND final funds to close will need to be “ELECTRONICALLY WIRED” TO ESCROW and will need to be provided to escrow as per the terms of the contract. (usually 3 days from acceptance date) NO ACH DEBIT(S) ARE ALLOWED. Provide them with your escrow holder name and number so that they may call direct to obtain wire instructions for the forwarding of funds, OR, advise them that the escrow holder will be contacting them direct to provide wire instructions directly.
- ALWAYS ask your clients if they have any plans on leaving the area during the escrow process. This can sometimes delay the escrow closing if at the last minute we are informed that the buyer/seller is out of town, or out of the country and they are not available to sign their escrow/loan documents.
- At the listing appointment, ask your seller if there is a homeowners association involved with the property, if so, is there just one, or two? You would be surprised how many homes are within a “master” and “sub” association. Also PREPARE YOUR SELLERS that there may be {and usually will be} an upfront HOA fee required to be paid to EACH homeowners association. This is usually $300.00 to $500 for EACH homeowners association for the property. Also prepare them that the cost for the upfront HOA fee will include a RUSH fee, as it is imperative that the HOA documents are ordered in sufficient time for the buyers to receive and review in order to remove their contingencies.
- Title owned under Trust(s), LLC, Incorporation. If you see that the current ownership is under an “entity” as opposed to individuals, remember that title and escrow will ALWAYS need a copy of the supporting documents to be reviewed and approved. Sometimes sellers will keep these documents in an area other than their residence , so please let them know that they will have to retrieve the original documents to be provided to your escrow holder.
- Title owned as individuals: If you have more than one seller of the property, Always ask if they are married, Single, Etc. Based upon their answer, further documentation may need to be provided and /or prepared to successfully close your transaction.
- Always provide your escrow holder with your client contact information at the opening of escrow. This should include clients address, email and phone numbers. Also include your transaction coordinator information if applicable as well as the other agent contact information.
- To stand out above the rest, physically schedule an appointment with your clients at the escrow company to sign their initial paperwork and to “hand them off” to your escrow holder.
- Let your escrow holder know if your clients are senior citizens, military as they may be eligible for an escrow discount on their escrow fees.
For more on Oakwood Escrow go to www.OakwoodEscrow.com
