Simple Tips for Buyers and Sellers to Avoid Holding Up the Escrow Process

Simple Tips for Buyers and Sellers to Avoid Holding Up the Escrow Process

Whether you are the buyer or seller, the last thing you want is to hold up your real estate transaction by making a mistake in the escrow process. At Neighborhood Escrow we are always sure to provide complete instructions to everyone involved so that you know what to do and when it have it done. Following you will find tips for sellers and tips for buyers. If you have questions, let us know at 310-378-2456 at your convenience.

Tips for Sellers to Prevent Holding Up the Escrow Process in California

We highly recommend that as the seller, you are sure to:

  • Submit all documents to the escrow holder as soon as you can.
  • Provide completed Seller Information Sheet (SI), which authorizes the escrow holder to get the loan payoff information they need, as well as other HOA documents if necessary.
  • Provide completed Statement of Information, which allows the title company to get rid of any liens, judgments, etc., against the property and the seller if they do not belong to them but instead belong to someone with the same name.
  • When you return the signed document, send either check or credit card info per the Escrow Instructions to get the HOA documents and, if necessary, the Water Retrofit Report. These are part of the due diligence document process and are required.
  • If the seller is a corporation, they should provide articles of incorporation, State of Information as filed with the state, and a letter of Good Standing. If the seller is an LLC then LLC-1 and LLC-12 will be required.

Depending on the specifics of your transaction, there may be additional documents requested or required from you.

Tips for Buyers to Prevent Holding Up the Escrow Process in California

Likewise, there are some tips that can make the escrow process simpler for buyers as well. These tips include:

  • Make sure you have your deposit in escrow within three business days of the date of acceptance. The best method is wire transfer, which can help prevent delays in processing. Other payment methods are subject to clearance requirements to process the file.
  • If you are obtaining financing, make sure that you provide lender information to the escrow holder as soon as possible. One of the main causes of delays during the escrow process is lack of lending information. If your lender makes requests directly from you, make sure you respond to them as soon as possible.
  • The contingency period is the amount of time you have to investigate the property and look at all documents. Do so as soon as possible – do not wait until the last few days to do so.
  • While your mileage may vary, a typical timeline for Due Diligence is 17 days and 21 days is typical for Loan Contingency. If you have time issues, speak with your Realtor.

Whether you’re the buyer or the seller, proactive behavior can help speed up the escrow process. At Neighborhood Escrow we are standing by to help – just call us at 310-378-2456.

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