There are a lot of moving parts to every real estate transaction, and many people aren’t sure what happens during closing and escrow. Today, special guest Molly O’Dell from Oakwood Escrow is here to answer the three top escrow questions we get from our clients.
1. When is closing and what does that mean here in San Diego?
The closing date is based off the contract that the Realtor gives to the escrow company. Closing usually takes 30 to 45 days, although Molly says that it can be shorter or longer. At closing, all of the documents are signed and approved by all parties in the transaction: the lender, the title company, the buyer, and the seller.
2. As a seller, when will the money from your home sale hit your bank account?
At closing, everything is sent to the title company within 24 hours, or the next business day. Your funds will probably hit your bank account the day after that, so you will get your money about 24 to 48 hours after closing the hold or file.
3. Why do you have to sign documents with your Realtor and then sign documents with the escrow company?
Your escrow company is a neutral third party. Although you signed contracts with your real estate agent allowing the escrow company to be part of the transaction, you still have to sign new documents with the escrow company. According to Molly, you don’t want your agent to sign your escrow documents because the escrow company is supposed to be a completely neutral third party.
An independent escrow company is very important to both buyers and sellers. An independent escrow company doesn’t have a hand in the buyer agent’s commission or the listing agent’s commission. There are some in-house escrow companies that are affiliated with real estate agents. If they are under the same roof and same name as a real estate agent, they will obviously have a preferred party in each transaction. Molly says that the value of an independent escrow company is that they are able to step back and help both sides equally.
If you have any other questions for Molly, you can reach her at firstname.lastname@example.org or (619) 889-5639. As always, if you have any real estate questions, just give us a call or send us an email. We would be happy to help you!