Engel Volkers Buyer & Seller Guide Bozeman - Manual / Resource - Page 44
E n g E l & Vö l k E r s | B oz E M a n
The escrow process
If you’re buying a home, you’ll probably hear the word “escrow” used in a few different contexts. let’s look at
what escrow is, how it works and how it can benefit you as a home buyer, seller or homeowner.
Escrow holder duties
• serves as a neutral third party and the liaison between all parties involved.
• Requests a Preliminary title Report to determine the status of the title to the property.
• Prepares the escrow instructions.
• complies with lender’s conditions and prepares necessary documentation.
• Requests payoff demands for anything to be paid through escrow.
• Receives closing instructions, documents, borrower’s funds and reviews file to determine that all conditions have been
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met.
records the Deed and other related documents.
closes the escrow.
Disburses funds as authorized by the instructions, including charges for title insurance, recording fees, lender fees and
loan payoff.
• issues the title insurance Policy for the borrower and the lender.
What do I need to provide?
You may be asked to complete a statement of Identity and a Consent to Communicate due to privacy laws as part of the
paperwork. Because many people have similar last names, the statement of Identity is used to identify the specific person in
the transaction through such information as date of birth, social security number, etc. this information is considered highly
confidential.
When do I sign escrow instructions?
approximately 4-6 days before closing, the title and escrow company will contact you or your agent to schedule a signing
appointment. You will need to bring the following:
1. Driver’s license or ID for each signer.
2. any trust paperwork.
3. address or bank information for proceeds, if not picking up check.
4. Funds in form of cashier check or wire if purchasing simultaneously.
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