WHAT IS ESCROW? TIMLINESS IS KEY TO A  SMOOTH ATLANTA GEORGIA REAL ESTATE  CLOSING PROCESS

In a majority of the United States (approximately 37 states), the purchase of real property does not include the use of escrow. In these states, escrow is replaced with what is called a table closing. Real estate attorneys conduct these closings. In California we have escrow.What is escrow? Escrow is the place where a neutral third party assembles all of the necessary contracts, documents, disclosures and funds in order to provide for the transfer of a piece of real property from one person to another.As mentioned above, escrow is a neutral third party. The key word is neutral. Most people believe their escrow officer can and will give them whatever advice they need. WRONG! Escrow is a neutral third party and cannot draft your contracts (other than escrow instructions), negotiate contract terms or offer legal advice.Drafting the contract is the real estate brokers job. If you do not have a real estate broker and are selling "for sale by owner", I suggest you hire an attorney. If further negotiations are necessary other than those already agreed upon, this is where the real estate brokers services are invaluable. No person involved in the purchase, sale or escrow process, including the escrow officer, real estate broker, title officer etc., can give legal advice unless they are an attorney.

ESCROW OFFICERS DUTIES
Besides working extremely hard on each transaction, an escrow officer has certain responsibilities.She will prepare the escrow instructions, which will supplement the purchase contract and contain additional information that will help facilitate the escrow process. As with all documents, make sure that you read and thoroughly understand the supplemental escrow instructions.The escrow officer will contact the title company and order a title search, which will show any liens, easements, judgments, etc. against the property. The title search will be memorialized in a preliminary title report. Read this report carefully! Based upon this report, the title company will issue, in most cases, a title insurance policy.The escrow officer will contact the beneficiaries under any loans the seller may have and ask for a beneficiarys statement or pay-off demand. The escrow officer will hold the deposit funds for the buyer and work directly with the buyers lender. The escrow officer will prepare and/or record the grant deed or other necessary documents. He will prorate the real property taxes, interest on any loans, insurance and rents, if any.Escrow will close only when all of the terms and conditions in the purchase contract and supplemental escrow instruction have been met. Upon the close, the escrow officer will disburse funds including paying any underlying liens, title insurance fees, escrow fees, recording fees, and real estate commissions.The escrow officer will then prepare a final statement for the seller and buyer, accounting for the disposition of all funds. As you can see, the escrow officer has her hands full. In addition to the seller and buyer, each escrow has at least 10 other parties involved in the transaction. The sellers and buyers real estate broker; escrow officer; title representative and officer; buyers lender, processor, underwriter and appraiser, home inspector, termite company, home warranty company, as well as each of these parties assistants and representatives. In addition to your escrow, the escrow officer has many simultaneous escrow transactions with other sellers and buyers.What can a seller or buyer do to insure that their escrow goes smoothly?1. After you have read and thoroughly understood the documents that the escrow officer (or anyone for that matter) has sent to you, sign them and return them immediately. I have seen the close of escrow delayed on numerous occasions because the seller and/or buyer did not execute and return documents when requested.2. Be prepared to provide loan information and documentation, deeds or other recorded documents when requested. Be prepared to make decisions regarding repairs, title, termite and home warranty, etc.Leave the escrow officer alone! I recently spoke with an escrow officer who stated that her biggest frustration was the constant phone calls from sellers, buyers and real estate agents. Your escrow officer will ask you to execute certain documents and provide certain information. When they need you, they will find you. In the thousands of escrow in which I have been involved, most, if not all, escrow officers did an extremely competent job. Leave them alone to do their job!Escrow can be a smooth process or a nightmare. This depends on the persons involved in the transaction. As a seller or buyer, your part is relatively easy. Execute and return all documents after you have read and thoroughly understood them and provide information when requested in a timely manner.Good luck in your next escrow!