Home Selling in 92129>Question Details

rnkleomo, Home Seller in San Diego, CA

My question is who opens the escrow when we come out with an agreed price. Does his bank who is loaning them the morgage or us the seller.?

Asked by rnkleomo, San Diego, CA Sat Mar 30, 2013

Tennat interest in buying the house

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Answers

18
Great question and one that is unfortunately often explained incorrectly.

Addressing your primary question, the escrow company is a negotiation and can be determined by either side as negotiated. In practice, the listing agent generally will ask for their escrow of choice, and "should" allow the buyers representation to choose title. Unfortunately in a market such as ours, many listing agents will dictate in their listings that both are the choice of their sellers.

To answer your second question, the price the home is sold for is to be the contract price, thus a contract. A contract is that which is agreed upon by an buyer and seller and it is agreed upon mutually and thus binding. Again, in practice, an appraisal has an affect on what a buyer is able to obtain a mortgage for and therefor affects their buying power. In the event that an appraisal comes in below the agreed upon purchase price, the buyer has the right to try to renegotiate the purchase price, but let me be very clear that the seller has no contractual obligation to agree. In an effort to keep the deal together and "come to terms", a seller may agree to negotiate the sales price to ensure that the transaction closes. If the seller does not want to agree, the buyer reserves the right to cancel, if they are within their contractual timeframes and have not removed the appraisal contingency. Should you have more questions regarding contingencies, please call or email me for a more in depth answer.

There are many variables and strategies in a real estate transaction, and I am more than wiling to share my detailed and intimate knowledge of our California residential purchase agreement.

I am an a open book and a wealth of knowledge, feel free to email, call or text me with questions.

To gain insight as to who I am, how I conduct myself and how I take great care of my clients, please refer to my recommendations on Trulia.

Very Respectfully,

Neal I. Akin
The Akin real Estate Team
Coastal Premier Properties
858.692.0677
nealakin@gmail.com
http://www.nealakin.com
BRE# 01812949
2 votes Thank Flag Link Wed Apr 2, 2014
Hi,

Usually the Seller's decide the escrow company typically. The Seller can allow the Buyers to choose the escrow company as well, but it's far more common for the Seller to do so. Once you have an agreed deal and contract...this is submitted to the escrow company chosen. This "opens" escrow and the deposit check should quickly (usually 2-3 days) be placed into this escrow account by the Buyers.

If you have any other question you can call me at 619-519-3287

Frederick Remick
Keller Williams RE
TOP PRO
619-519-3287
1 vote Thank Flag Link Sat Mar 30, 2013
sellers agent opens escrow.
0 votes Thank Flag Link Fri Jul 4, 2014
For California, Typically escrow is opened by the seller. If negotiated to use buyers escrow company then Buyer would open escrow.
0 votes Thank Flag Link Fri Jun 13, 2014
It varies from state to state. Just ask your listing agent. It would generally be escrowed by a third party such as the listing company or the closing attorney/title company
0 votes Thank Flag Link Wed May 7, 2014
I forgot to mention the scenario I mentioned below was for a FSBO. If the property is listed than typically the listing agent gathers the documents and calls escrow an opens it.



Best Wishes,

David R. Indermill

Re/Max Hall Of Fame, CDPE | Since 1998 | Luxury Real Estate Advisor
International Referrals | Bank Owned Assets | Off Market Properties
Large Cash Investor Fast Close Network | B.R.E License # 01232827


http://www.SanDiegoHomeStore.Com

Cell: 858-414-LIST (5478) Texting OK
Fax: 858-430-5544
Email: david@sandiegohomestore.com

http://www.trulia.com/profile/sandiegohomestore/

Re/Max Associates 1010 Prospect Street, suite 300 La Jolla, CA 92037
"Nobody Sells More Real Estate in The World Than RE/MAX"
0 votes Thank Flag Link Wed May 7, 2014
Once the buyer and seller come to an agreed price, you should now fully execute a contract with the buyers and sellers signatures. Now you can contact the escrow company and fax or email a copy and they open an escrow with a number attached to the contract. The escrow company is a third neutral party who navigate all the paperwork and their service is worth every penny.



Best Wishes,

David R. Indermill

Re/Max Hall Of Fame, CDPE | Since 1998 | Luxury Real Estate Advisor
International Referrals | Bank Owned Assets | Off Market Properties
Large Cash Investor Fast Close Network | B.R.E License # 01232827


http://www.SanDiegoHomeStore.Com

Cell: 858-414-LIST (5478) Texting OK
Fax: 858-430-5544
Email: david@sandiegohomestore.com

http://www.trulia.com/profile/sandiegohomestore/

Re/Max Associates 1010 Prospect Street, suite 300 La Jolla, CA 92037
"Nobody Sells More Real Estate in The World Than RE/MAX"
0 votes Thank Flag Link Wed May 7, 2014
The Listing agent typically opens the escrow after they send over a fully executed contract to the escrow officer and receives a escrow number that is assigned to the transaction.

Best Wishes,

David R. Indermill

Re/Max Hall Of Fame, CDPE | Since 1998 | Luxury Real Estate Advisor
International Referrals | Bank Owned Assets | Off Market Properties
Large Cash Investor Fast Close Network | B.R.E License # 01232827


http://www.SanDiegoHomeStore.Com

Cell: 858-414-LIST (5478) Texting OK
Fax: 858-430-5544
Email: david@sandiegohomestore.com

http://www.trulia.com/profile/sandiegohomestore/
0 votes Thank Flag Link Wed Mar 26, 2014
The listing agent will open the escrow.


Kawain Payne, Realtor
0 votes Thank Flag Link Sat Feb 15, 2014
The listing agent usually opens the escrow with the provider that has been agreed upon in the contract. If the contract states "seller's choice" then the seller and listing agent choose the escrow company best suited to handle the transaction. Escrow is "opened" by the escrow officer once they have received a copy of the fully executed contract (usually sent by the listing agent) When choosing an escrow company, there are many things to consider such as their track record, compliance with current regulations, knowledge and location to name a few. It is also a great idea to send the fully executed copy of the contract to the loan officer at this time so they can begin their process.
Web Reference: http://www.sdhomeowner.com
0 votes Thank Flag Link Sat Feb 1, 2014
The escrow agency is negotiable. It's usually assigned in the Purchase and Sale Agreement, but the Buyer or Seller can request a specific agency. And, it's the escrow agency that opens escrow and handles the transaction as a third party.
0 votes Thank Flag Link Fri Jan 31, 2014
If your tenant is purchasing the home, you as the seller can select an escrow of your choice bring along the executed contract and his good faith deposit along with the letter of loan approval from his bank. The bank will coordinate with the escrow company.
Escrow is a neutral party and you will have the previledge to select it. If you have an escrow company you like near your home where it will be convenient for you to stop in and sign required documentation, also for the buyer to drop off his good faith and do loan sign up it will be advantageous. The bank will work with whichever escrow company you select.

Thank you,
Stella Biggs / Summit Realty Group
619-384-1945
0 votes Thank Flag Link Mon Apr 1, 2013
The party that selected the escrow generally will open the Escrow. As a part of my services I either open the Escrow for my Client or make sure that the "other side" opens it immediately and with accurate information about the transaction & the parties to the transaction.

Got More Question?

Desi Arnaz

(858)413-2153
http://www.DesiArnaz.Net
0 votes Thank Flag Link Sun Mar 31, 2013
Usually the listing agent opens escrow..

How was the contract written? Who determined the escrow company that should be used? While either party may open escrow, it is often whoever chose the escrow company. If you need recommendations, please let me know,
0 votes Thank Flag Link Sat Mar 30, 2013
Generally speaking, if using a standard-issue residential purchase agreement form, unless the Buyer's agent specifies differently, the default protocol is for the listing agent to open escrow upon acceptance. It is customary protocol for both parties to split the cost of the escrow service 50-50... unless otherwise specified.
Web Reference: http://www.sethchalnick.com
0 votes Thank Flag Link Sat Mar 30, 2013
Home Seller,
If you are using the CA residential purchase agreement look at section 4. Subsection C. titled Escrow and Title the escrow holder should be listed with sellers/buyers choice and they would most likely be responsible for opening escrow.
0 votes Thank Flag Link Sat Mar 30, 2013
In most transactions, the sellers side chooses the escrow company. Now, this is when real estate agents are involved normally. I have done "paperwork only" deals for people in your situation before (a seller has a buyer already, but wants an agent to take over in regards to all the paperwork, inspections, disclosures, etc.) for an agreed upon commission. I'd be happy to discuss this option with you.

Jeff Mendelsohn, Realtor
(619) 339-2166
0 votes Thank Flag Link Sat Mar 30, 2013
The general rule is the party that chooses the escrow company, opens and pays for escrow. So, it depends on who makes the choice with your deal.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Sat Mar 30, 2013
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