Fidelity National Title offers you experienced escrow settlement agents who are well trained in real estate closing procedures and the issuance of title insurance. Our agents act as a disinterest third party who follows the instructions of the principals. Their wealth of technical experience and knowledge of how to keep track of all the transaction details is your assurance of a smooth closing. Fidelity National Title’s escrow settlement agents get the job done with efficiency and accuracy.
To contact an escrow agent near you, click on the Find an Office link provided above. For more specific answers to your escrow settlement questions, use the links provided below:
SPECIAL ESCROWS
When the word "escrow" is mentioned, most people think in terms of a real estate transaction. In fact, there are several other types of transactions for which Fidelity National Title Company is able to provide escrow services. Transactions involving a bulk sale, mobile home, liquor license transfer or timeshare are some of these. Because Fidelity National Title Company is, as its name indicates, a title insurance company, you may have presumed that we are involved exclusively with transactions that require the issuance of a title insurance policy. Quite the contrary. We pride ourselves in the fact that we are a full service company with the ability to provide services in many related areas. A bulk sale generally involves the sale of a business and, if properly handled, serves to protect the creditors of the seller of the business and the purchaser of the business. The statutes governing bulk sales require a notice to be recorded and published which gives the creditors of the seller an opportunity to file claims with the escrow holder for amounts due them for providing goods and/or services to the business. This process also protects the purchaser from the creditors of the seller. Only very competent, experienced escrow officers handle these transactions.
Mobile homes can be located either within mobile home parks or upon privately owned real property. If a mobile home has been, or is in the process of being, installed upon a permanent foundation system, it is legally transformed into and becomes defined as real property. All of these circumstances will impact the way in which a transaction for the transfer of a mobile home is handled. Escrow officers handling these transactions must be very familiar with the titling and transfer requirements of the Department of Housing and Community Development of the State of California.
A rapidly growing segment of business is in the handling of the sale and purchase of time-share interests in vacation and resort properties. Because of the large number of interests that are created in every time-share development, strict attention to detail is absolutely essential. Our time-share specialists are specifically trained to handle just these transactions.
BACK
LENDER ESCROWS
As a real estate lender, protection of the collateral for your loans is of utmost importance to you, whether you are making multi million dollar loans on commercial shopping centers or $20,000 equity line loans to homeowners. Fidelity National Title Company has a variety of products, each designed to respond to a specific need. More than 150 years of experience coupled with the highest insurance reserves in the industry assure you of the greatest level of protection available. Regardless of size, the experienced, dedicated members of our staff will give every transaction the attention it deserves.
BACK
LIFE OF AN ESCROW
It all begins with the offer and acceptance skillfully negotiated by the real estate agents representing Buyer and Seller.
The Buyer(s)
Tenders a written offer to purchase (or accepts the Seller's counter-offer) accompanied by a good faith deposit amount.
Approves and signs the escrow instructions and other related instruments required to complete the transaction.
Approve the preliminary report or title commitment and any property disclosure or inspection report required in the purchase and sale agreement.
Approves and signs new loan documents and fulfills any remaining conditions contained in the contract, lender's instructions and/or the escrow instructions.
Deposit funds necessary to close the escrow.
Approve any changes by signing amendments in the escrow instructions.
The Lender (when applicable)
Accepts the new loan application and other related documents from the Buyer(s) and begins the qualification process.
Orders and reviews the property appraisal, credit report, verification of employment, verification of deposit(s), preliminary report and other related information.
Submit the entire package to the loan committee and/or underwriters for approval. When approved, loan conditions and title insurance requirements are established.
Informs Buyer(s) of loan approval terms, commitment expiration date and provides a good faith estimate of the closing costs.
Deposit the new loan documents and instructions with the settlement agent for Buyer's approval and signature.
Reviews and approves the executed loan package and coordinates the loan funding with the escrow officer.
The Escrow Settlement Officer
Receive an order for escrow and title services.
Place order for the preliminary report or title commitment for the subject property from Fidelity National Title.
Acts as the impartial "stakeholder" or depository, in a fiduciary capacity, for all documents and monies required to complete the transaction per written instructions of the principals.
Prepare the escrow instructions and required documents in accordance with terms of the sale.
With the authorization from the real estate agent or principal, orders demands on existing deeds of trust and liens or judgments, if any. For assumption or subject to loan, orders the beneficiary's statement or formal assumption package.
Reviews documents received in the escrow: preliminary report or title commitment, payoff or assumption statements, new loan package and other related instruments.
Review the conditions in the lender's instructions including the hazard and title insurance requirements.
Present the documents, statements, loan package(s), estimated closing statements and other related documents to the principal(s) for approval and signature, and requests the balance of the buyer's funds.
Receive the proceeds of the loan(s) from the lender(s).
Determines when the transaction will be in the position to close and advises the parties.
Assisted by title personnel, records the deed, deed of trust and other documents required to complete the transaction with the County Recorder and orders the title insurance policies. Depending on the property location, the recordation of the documents may occur after the closing date.
Close the transaction by preparing the final settlement statements, disbursing the proceeds to the Seller, paying off the existing encumbrances and other obligations.
Deliver the appropriate statements, funds and remaining documents to the principals, agents and/or lenders.
The Seller(s)
Accept Buyer's Offer to Purchase and initial good faith deposit to open escrow.
Submit documents and information to escrow holder, such as: addresses of lien holders, tax receipts, equipment warranties, home warranty contracts, any leases and/or rental agreements.
Approves and signs the escrow instructions, grant deed and other related documents required to complete the transaction.
Orders inspections, receives clearances and approves final reports and/or repairs to the property as required by the terms of the purchase and sale agreement (Deposit Receipt).
Fulfills any remaining conditions specified in the contract and/or escrow instructions; approves the pay off demands and/or beneficiary's statements.
Approve any final changes by signing amendments to the escrow instructions or contract.
Fidelity National Title
Receive an order for title service.
Examines the public records affecting the real property and issues a preliminary report or title commitment.
Determines the requirements and documents needed to complete the transaction and advises the escrow settlement officer and/or agents.
Reviews and approves the signed documents, releases and the order for title insurance, prior to the closing date.
Fidelity National Title records the signed documents with the County Recorder's office and prepares to issue the title insurance policies.
BACK
NEW COMMUNITIES ESCROW
Fidelity National Title maintains escrow and title divisions nationwide that specialize in serving the needs of our developers, builders and lenders of new communities. Our New Communities division provides high quality title services and escrow coordination for increased liability and high volumes of transactions that exceed the inherent needs of the real estate professionals involved in the development of real estate. We have built a reputation for efficiency in smoothly processing land acquisitions, demolition, new construction and sale-out transactions. Whether you're considering an industrial park subdivision, or accumulating parcels for a master planned community, Fidelity National Title can assist you with every phase of development.
We know that builder developers require speed, accuracy and confidentiality in the fulfillment of their title needs. That's why so many builders and developers choose Fidelity National Title.
We have a history of applying leadership and creative concepts in title coverage of land acquisition and developments.
Fidelity National Title has 150 years of real estate title experience. We have been the innovators of many revolutionary real estate concepts, including insuring air rights over property, title insurance for condominiums, interim-construction disbursements, inflation rider and closing services.
As a result, we enjoy the closest possible relationship with the real estate, mortgage lending and building industries as well as the legal profession. We developed many of the methods and techniques which are standard in title insurance today.
Our personal service is more than just title and real estate specialists backed by our sizable resources. Our local representatives are true professionals, experienced real estate title experts with detailed knowledge of real estate as well as an intimate understanding of the local markets and customs in their communities.
In person, by fax, e-mail, or by phone, Fidelity National Title New Communities Services is uniquely designed to meet your request for any of the following:
- Land Acquisition Title Processing
- Mapping with Qualified Assistance
- Full Engineering Department Expertise
- Development and Construction Loan Title Services
- Expert Service and Support in obtaining Governmental Approvals (DRE)
- Sale-out Title Processing
- Full local Escrow Services
- Technical Assistance and Coordination
- Innovative and Creative Underwriting Decisions
It is this dedication to serving the needs and alleviating the concerns of our customers that has made Fidelity National Title the nation's foremost name in title insurance. Fidelity National Title's policies and service are the most universally accepted by all in the real estate industry.
BACK
WHAT HAPPENS IN ESCROW SETTLEMENT?
An escrow is an arrangement in which a disinterested third party, called an escrow holder or settlement agent, holds legal documents and funds on behalf of a buyer and seller, and distributes them according to the buyer's and seller's instructions.
People buying and selling real estate often open a sale transaction with the settlement agent for their protection and convenience. The buyer can instruct the settlement agent to disburse the purchase price only upon the satisfaction of certain prerequisites and conditions. The seller can instruct the settlement agent to retain possession of the deed to the buyer until the seller's requirements, including receipt of the purchase price, are met. Both rely on the settlement agent to carry out faithfully their mutually consistent instructions relating to the transaction and to advise them if any of their instructions are not mutually consistent or cannot be carried out.
Fidelity National Title provides professional escrow settlement services that are a convenience for the buyer and seller because both can move forward separately but simultaneously in providing inspections, reports, loan commitments and funds, deeds and many other items, using settlement as the central depositing point. If the instructions from all parties to the transaction are clearly drafted, fully detailed and mutually consistent, the settlement agent can take many actions on their behalf without further consultation. This saves time and facilitates the closing of the transaction.
The settlement process was developed to help facilitate the sale or purchase of your home. The settlement agent accomplishes this by:
- Acting as the impartial "stake-holder," or depository of documents and funds
- Processing and coordinating the flow of documents and funds
- Keeping all parties informed of progress on the escrow
- Responding to the lender's requirements
- Securing a title insurance policy
- Obtaining approvals of reports and documents from the parties as required
- Prorating and adjusting insurance, taxes, rents, etc.
- Recording the deed and loan documents
- Maintaining security and accountability of monies owed and owing.
BACK
WHO MAY HANDLE ESCROW SETTLEMENTS?
The settlement agent must be a disinterested third party and each state has different requirements for licensing. In some areas of the country, only a licensed attorney may act as the settlement agent.
There are two important reasons for selecting an established company: 1) The processing and closing of real estate transactions require a tremendous amount of technical experience and knowledge; 2) The settlement agent is responsible for safe-guarding and properly distributing funds and documents required to successfully complete the transaction.
Settlement agents with established firms, such as Fidelity National Title, generally are experienced and trained in real estate procedures, title insurance, taxes, deeds and title insurance.
Impartiality
A settlement agent must remain completely impartial throughout the entire escrow settlement process. He or she will normally adopt a courteous but rather formal manner when dealing with parties to the escrow, keeping conversation to the matters at hand in the escrow. This formal behavior is meant for the benefit of all concerned, since the settlement agent must follow the instructions of both parties without bias.
BACK
INSTRUCTIONS TO THE SETTLEMENT AGENT
Settlement Agents work from specific instructions provided by buyer and seller. Throughout the country the settlement process differs, but the role of the settlement agent remains the same. Depending on local custom, the escrow settlement agent may work from the purchase and sale agreement and any loan escrow instructions provided and/or separate escrow instructions prepared at the direction of the principals to the transaction.
Instructions are written documents, signed by the parties giving them, which direct the settlement agent in the specific particulars of the transaction. The settlement agent follows those to insure the proper steps are completed so the escrow can be closed.
Typical instructions include:
- The method by which the settlement agent is to receive and hold the purchase price to be paid by the buyer.
- The conditions under which a lapse of time or breach of purchase contract provision will terminate the escrow without a closing.
- The instruction and authorization to the settlement agent to disburse funds for recording fees, title insurance policy, real estate commissions, and any other closing costs incurred through escrow.
- Instructions as to the proration of taxes, rents or association dues, as applicable.
- Instructions on the payment of prior liens and charges against the property and distribution of the net sale proceeds.
Since the settlement agent can only follow the instructions as stated, and may not exceed them, it is extremely important that the instructions be stated clearly and be complete in all details.
BACK
WHAT EACH PARTY DOES IN ESCROW
The Seller:
- Deposits the executed deed to the buyer with the settlement agent.
- Deposits evidence of pest inspection and any required repair work, if applicable.
- Deposits other required documents such as tax receipts, addresses of mortgage holders, any state or federal required documentation, etc.
The Buyer:
- Deposits the funds required, in addition to any borrowed funds, to pay the purchase price with the settlement agent.
- Deposits funds sufficient for home and title insurance.
- Arranges for any borrowed funds to be delivered to the settlement agent.
- Deposits any deed of trust or mortgages necessary to secure loans.
- Approves any inspection reports, the Preliminary Report for title insurance, etc., called for by the purchase and sale agreements.
- Fulfills any other conditions specified in the instructions.
The Lender (if applicable):
- Prepares loan document package for buyer/borrower.
- Deposits proceeds of the loan with the settlement agent.
- Directs the settlement agent on the conditions under which the loan funds may be used.
The Settlement Agent:
- Opens the order for title insurance.
- Obtains approvals from the buyer on the Preliminary Report/ Title Commitment, pest and other inspections.
- Receives funds from the buyer and/or any lender.
- Prorates taxes, rents, etc.
- Disburses funds for title insurance, recording fees, real estate commissions, lien clearance, etc.
- Prepares an estimated statement or HUD settlement statement, as required, for each party, indicating amounts to be disbursed for services and any further amounts necessary to close.
- Records deed and loan documents, delivers the deed to the buyer, loan documents to the lender and funds to the seller, closing the escrow.
- Issues final closing statement/HUD settlement statement and forwards to buyer, seller and lender.
Questions?
If you have questions about the escrow process, please call your local Fidelity National Title office or click on the Office Locator in the Menu Bar to the left.
BACK
CLOSING THE SALE TRANSACTION AND DIVISION OF CHARGES
Closing
Once all the terms and conditions of the instructions of both parties have been fulfilled, and all closing conditions satisfied, the escrow is closed and the safe and accurate transfer of property and money has been accomplished.
Division of Charges The method of dividing the charges for the services performed through the settlement process or as a result of escrow varies from place to place. The fees and service charges to be divided might include, for example, the title insurance policy premium, escrow settlement fee, any transfer taxes, recordation fees and cost in connection with any loan being obtained. Unless there is some special agreement between the buyer and seller as to how these charges are to be paid, local custom will generally be followed in drafting the instructions to the settlement agent as to how they are to be divided.
For an online fee quote for your particular transaction, access our rate calculator by using this link:
Fidelity National Title Rate Calculator
Prorations
The escrow settlement agent will allocate between seller and buyer their proportionate share of an obligation paid or due. For example, a pro-rata share of real property taxes or homeowner’s association dues are charged to the buyer and credited to the seller if they are prepaid at time of closing. The amounts prepaid are calculated per day from the date of closing to the date that they are paid to as follows:
Example
Semi-annual Property Taxes in the amount of $665.05 are prepaid by the Seller to July 1st. Date of closing is June 15.
There is 15 days worth of taxes due to be reimbursed to the seller at $3.69 per day for a total credit to the seller and charge to the buyer of $55.35.
BACK |