It is traditional in Sacramento County for the escrow to be opened by the "listing agent" (or the real estate agent who has the property listed for sale). This custom came about because in Sacramento County it is typical for the seller to pay for the CLTA owner’s title insurance policy on the property. Thus, it is usually the seller’s agent who will open the escrow with the escrow agent agreed to by the seller. In recent years, both sellers and buyers are more knowledgeable about the escrow process, and many buyers are now asking for the opportunity to direct the escrow to their favorite title company.

When an "order" (or "file") is opened, the agent will call the selected escrow officer. At this time an "escrow number" is issued, which will be used to identify the transaction throughout the escrow (and, once the file is closed, it will be used by the storage system to safeguard these files). When the order is opened, the real estate agent is asked to give all the information about the property (current owner, address, prospective buyer, buyer’s lender, outstanding loan information, sales price etc.) to the title company. The agent may also send or FAX a written set of instructions which outlines the details of the transaction, such as commission to the be paid to the agent and expected closing date. This information may also be given verbally.

The next step is to verify all of the pertinent information with the buyers agent. It will also be found out if a home warranty will be taken on the new home, when can the termite report be expected to be completed, as well as any other other details which will affect the escrow. It is also important that everyone involved in the transaction has the title company's phone and FAX numbers as well as the escrow number.

How is a resale escrow closed?

When an escrow file is opened, ther should be a list of all the items necessary to close the escrow. These may include the buyers deposit, loan documents, fire and other insurance policies, home warranty, termite report, terms of the sale and any seller-assisted financing, title insurance policy and requests for payment for various services to be paid out of escrow funds. At that time all parties are asked when they hope the escrow will close. Because most people have rent or lease payments month to month, escrows often close at the end of the month so the buyer can move into their new home and avoid paying another month’s rent on the previous residence.