In Oregon you do not have to use an escrow and title company to purchase or sell a property. However, most agents will not work on a file without it going through an escrow and title company.
Many buyers and sellers are not aware that title and escrow are two entirely different things.
Escrow does the following (according to Amerititle)
To prepare for the closing of your transaction, your escrow agent
- Prepares escrow instructions as directed by the parties involved
- Obtains a preliminary title report or a commitment of title
- Orders a statement of identity (information) on the buyer and seller
- Orders loan payoffs at the client’s request
- Complies with the lender’s requirements specified in the lender’s instructions
- Receives bills from termite, roof, appliance inspection and home warranty companies
- Receives purchase funds from client
- Prepares or secures the deed or other documents
- Prorates taxes, interest, insurance and rents according to instructions
- Secures release of contingencies/conditions as imposed on particular escrow
- Records deeds and other documents as instructed
- Closes escrow when buyer and seller have met all criteria for the transaction
- Disburses funds as authorized by instructions, including charges for title insurance, recording fees, real estate commissions and loan payoffs
- Prepares final statements for the parties, accounting for the disposition of all funds deposited in escrow
Tomorrow we will discuss Title and what the title company does for you.