Understanding The Escrow Process (Non-NY Style Closings)

  • Opening Escrow

    Purchaser and Seller agree on a purchase price and sign a Purchase Agreement. Purchaser deposits the earnest money deposit money into an escrow account.

    Note: If the Seller is doing a 1031 exchange, then contact 1031trx for additional contract language to include in the Purchase Agreement.
  • home-icon-01.png Contact 1031trx (if Seller 1031 Exchange)

    If Seller is doing a 1031 exchange, now is the time to contact 1031trx to set up the exchange account.
  • Bank Appraisal/Purchaser's Financing

    Purchaser's lender does an appraisal on the property.

    If it comes in lower than the offered price, the lender will not issue a final loan commitment unless Purchaser comes up with the cash for the difference or Seller lowers the offered price to the appraised amount.
  • Purchaser Obtains Title Report & Title Insurance

  • Seller Disclosures/Purchaser Inspections

    Seller cures any problems with the property that were addressed in the Purchase Agreement and/or Title Report.

    Purchaser obtains necessary inspections (e.g., home inspection, pest inspection, environmental inspection).
  • Final Walk-Through

    Purchaser re-inspects the property right before the closing to make sure no new damage has occurred and that the Seller is delivering the property pursuant to the Purchase Agreement.
  • Closing Day

    Both parties sign paperwork related to the transfer and the closing funds are settled. Purchaser is given a new deed for recording at the county clerk's office.

    home-icon-01.png Escrow Company wires the exchange funds to 1031trx.home-icon-01.png

CONTACT TIMOTHY ALLOMONG
LICENSED REAL ESTATE ATTORNEY