Home Buying in Phoenix>Question Details

Denise, Home Buyer in Phoenix, AZ

why would an escrow company not have started to clear a title as soon as they get earnest money?

Asked by Denise, Phoenix, AZ Mon Feb 2, 2009

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Hello Denise,

The Escrow Companies are overworked, however that's no excuse for not doing what their getting paid for.
If they can't handle the load, then share the load with other Title Companies or Hire more help.
Call your agent have he/she request this information for you. Like Brad said Keep The Pressure On.

Thanks for the question, I hope we helped.
1 vote Thank Flag Link Mon Feb 2, 2009

Based on your question and subsequent comment, it looks like closing have been delayed due to title not being cleared. That is very unconventional. Title will order the report very soon after opening escrow, but clearing the title will take some more time. If you are dealing with an REO the banks are basically mass producing everything, including the title services, which is causing a great deterioration of the service.

But that is still very uncommon. Talk with your agent, he should be able to get to the bottom of this issue - he will know how to find out what is exactly going on, how go put pressure and how to get this expedited. Many times the reason for delaying closing is because the bank (owner) have not delived the executed title.

Good luck!

ABR - Accredited Buyer Representative
0 votes Thank Flag Link Mon Feb 2, 2009

It is our understanding through working closly with title companies that it is standard procedure to wait until several days before the closing.

This delay allows for a larger window of time to account for outstanding debt, liens, taxes, etc. The additional time is taken, in theory, in the best interests of the customer.
0 votes Thank Flag Link Mon Feb 2, 2009

They usually start a title search early, however I would follow-up with them and get them to speed it up if it is something that is important to you now. Also, with all the lender owned properties I think they are backed up in many offices.

Feel free to call if you have any questions!

0 votes Thank Flag Link Mon Feb 2, 2009
Most title companies will order the preliminary title report as soon as escrow has been opened. You shouldn't be alarmed, since you will have 5 days to review and approve the prelim. Is there a reason you are concerned about the title to this property?
Web Reference: http://www.jameswehner.com
0 votes Thank Flag Link Mon Feb 2, 2009
Most title companies will start process of any all paperwork however they dont normally start investigate clear title till after option period have passed you can decline your offer they have wasted time PERHAPS not used if another offer is placed.
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Mon Feb 2, 2009
Hi Denise!

The answer could be a number of things. But the tome of your questions invites me to wonder if there's another problem here. Are you worried about something? Is there some specific reason that you're worried about the title search? It's just that in my 12 years as a full time Realtor/Broker, I don't ever recall a buyer client being worried about the title search. Just wondering...

0 votes Thank Flag Link Mon Feb 2, 2009
Especially if this is a bank or REO transaction you will be dealing with a escrow company that is overworked, keep the pressure on your escrow company to get your information to you in a timely manner.
Good Luck,
Web Reference: http://bradbergamini.com
0 votes Thank Flag Link Mon Feb 2, 2009
Technically, the receipt of the EMD only makes a contract (the purchase and sale agreement in this case) effective (or binding), and has nothing to do with ordering a title search. Either you or your lender needs to order the title search explicitly.

There are instances when a buyer might escrow an EMD, and not order a title search. For example, this could happen in a transaction where the seller will transfer title via a quit claim deed (for whatever reason).
0 votes Thank Flag Link Mon Feb 2, 2009
Hi Paul
First it was 1/23 then 1/30 and now 1/5, my realtor is just saying its out of his hand.
0 votes Thank Flag Link Mon Feb 2, 2009
HI Denise,

They usually do, but the escrow company may be working on hundreds of other files & just have not had the time to get to yours. It's also possible that the escrow company has made a mistake. We are all human & make mistakes all the time. What is your Buyer's Agent telling you? How long have you been in escrow? What is the escrow company telling you?

Buyer's Agent
0 votes Thank Flag Link Mon Feb 2, 2009
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