Have the Escrow Edge When Buying Your Orange County Home

You’ve put in hours of legwork, signed mountains of documents, wheeled and dealed ‘till the cows come home. And now you’re ready for the keys to your castle – a gorgeous piece of Laguna Beach real estate.

But there’s still one more bridge to cross. It’s called escrow -- a very necessary phase, which no doubt you’ve heard of. Fortunately, going from escrow to an Orange County home can be a fairly smooth experience, especially when you know what to expect and have The Coastal Property Experts on board.

As the best Laguna Beach real estate agents, we’ll help you sail into your Orange County home with an escrow edge. To get you started, we’ve prepared this very special EZ Escrow Survival Guide.

1. Invincible Instructions – All parties to the sale must give specific instructions to an escrow officer. This neutral party ensures that the actions required by the instructions are performed as indicated. If the seller has promised full payment for termite work in section 1 of your contract, make sure you receive a Termite Clearance from a licensed termite company. The clearance should include a one-year warranty.

And if a Request for Repairs stipulates that the seller is to repair the leaky pipe that’s on the verge of turning the kitchen into Lake Superior, verify the leak has been plugged and fixed. All escrow instructions must be properly executed before a single dime or foot on property can change hands. End of story.

Word to the wise -- read these instructions like a hawk. They’re the guidance system of your entire escrow. If something confuses you, don’t be shy. Ask your knowledgeable escrow officer or the Coastal Property Experts. They’ve got the answers and their fiduciary duty is to watch your back and backside.

2. Fees Please – Fees can be fat, thin, or in between, depending on the price tag of the deal. Still, there are a number of fairly standard escrow fees that consistently come into play. These include lender fees, recording fees, title insurance policy premium, prepaid taxes, and escrow fees as well as HOA fees if you are buying in a planned community. Save the personal checks for your utility bill. Wire transfer is now the only method for escrow fees to close your transaction. And relax. You won’t be footing the whole bill alone. Typically, the parties involved agree to divide the fees 50/50 for escrow.

3. In Closing – Alright. Everyone’s dutifully done his or her part. Instructions have been carried out to a tee. And all concerned have signed acres of paperwork verifying completed work and acknowledging what you, the buyer, are receiving from the seller. At this point, escrow will hand you a HUD 1 document for review. This itemizes all your costs, breaking them down into categories. This list includes all charges as well as credits due you. Now it’s time to bring the cash to the table. The escrow company collects the cash to cover all agreed-upon costs and close the deal.

4. For Your Review – The docs have gone back to the lender for their review too. In today’s market lenders take their time as well as do second appraisals, verify you are still working at the same job as you were 45 days ago when this started. So be patient. Uncle Sam plays apart in this too. Your money goes from the lender to title. Escrow authorizes the release of recording and after recording title pays off existing liens and taxes with the balance of funds going to disburse. Now it goes to the Orange County recording office and there can lay a problem. You will be waiting your turn till 10 little fingers graze your paperwork to issue a new deed of trust. You are almost there. Stop biting your fingers. Let your real estate agent bit hers. Here it comes listen ...

5. Reaching the Finish Line – ‘Confirmed’ – This is the word from a higher power. It is the message you as the buyer long to receive. It means title is now in your name, and the Laguna Beach home is at long last officially and irrevocably yours. Now get in there and gaze at a few sunsets. Naturally, you want your best shot at getting the all-important ‘confirmed’ signal. That’s why you want the best possible Orange County real estate agents in your corner during your home search. So make sure you get a professional who packs a powerful punch. Connect with our team at 949-415-6786 or hillary@thecoastalpropertyexperts.com.

Sunny Days and Smooth Sailing!