Once a buyer’s offer is accepted by a seller the two parties open “escrow”. Escrow is a 3rd party entity that handles the fulfillment of the terms of the purchase contract and distribution of money. They do not represent the buyer or the seller. During the transaction the buyer and/or the buyer’s lender will deposit money into escrow. Once all the terms of the purchase contract are completed then escrow will deliver any proceeds to the seller and ownership will transfer to the buyers. Along with the 3rd party company that facilitates the exchange of property the actual transaction is sometimes referred to as escrow. Below is a typical timeline of the process.
This timeline is based on a hypothetical transaction. All time frames are negotiable between the buyer and seller. You should consult with your realtor, loan officer, and escrow officer for the time frames in your transaction.
Typical transactions or “escrows” were usually for 45 days but due to recent mortgage changes, the typical length of a transaction is around 50 days. The mortgage industry has required extra time for borrowers to review their loan figures, prior to signing. accounting for 3-6 days in the transaction.
If you would like to speak to a realtor to go over the entire escrow process contact Joseph Castaneda at (808) 351-8394 or JosephC@BetterHawaii.com