Step 10: Opening Escrow (Initial Earnest Money Deposit)

As stated in Step 9, once I notify you that the seller has accepted your offer, we will need to make sure your initial Earnest Money Deposit gets delivered to escrow. We will have gone over escrow already both in steps 1 & 8. Escrow is a neutral 3rd party which holds the buyers funds and makes sure that both the buyer and seller abide by the terms of the purchase contract. Escrow holds all of the buyer’s funds (deposits and loan funds) and ensures that all the terms of the contract have been satisfied before funds are disbursed to the seller and the property is transferred to the buyer. 

The initial earnest money deposit is typically about 1% of the purchase price. You have several different methods to make sure the deposit gets to escrow in a timely manner. (1)I can pick this up from you; (2) you can deliver it to our office, or (3) drop it off at any branch of the escrow company that was chosen to handle the transaction. Typically, this deposit is due one day after your contract is accepted. 

There are only a handful of escrow and title companies in Hawaii: 

First Hawaii Title - http://www.firsthawaii.com/ 

First American Title - https://www.firstam.com/title/hi/

Fidelity National Title – http://www.fidelityhawaii.com/

Premier Title & Escrow  – http://premiertitlehawaii.com/ 

Old Republic Title – https://www.oldrepublictitle.com/hawaii

Title Guaranty - https://www.tghawaii.com

We as real estate professionals work with the above companies all of the time and can leverage our relationships with each company and the escrow officer to ensure a smooth transaction.

If the deposit will be wired, it would be best to notify your realtor before submitting your offer as a wire may take a day or two to process depending on your bank and the wire size. There may also be wire fees incurred from your bank. 

Whether a check is delivered or a wire is sent directly to escrow it is important to note the address of the property and attention to the escrow officer listed in the purchase contract. 

Previous, Step 9: I have an Accepted Contract

Next, Step 11: Schedule the Home Inspection

Steps to Buying a Home

HAWAII STARTS HERE | JOE CASTANEDA (R)

Joe is a realtor with Better Homes and Gardens Real Estate Advantage Realty. He majored in finance and has experience as a former mortgage loan originator. He has helped buyers both with new project loans and going through the process of applying and obtaining units in new projects. He uses his finance, mortgage, and real estate knowledge to help home buyers find the right properties to fit their needs. Contact Joe by phone or email at (808) 351-8394 or JoeC@BetterHawaii.com.