Escrow is a service which provides the public with a means of protection in the handling of funds and/or documents. Escrow enables the buyer and the seller to transact business with each other through a neutral party, thereby minimizing their risk. In the escrow, all parties involved give their instructions to this neutral intermediary, the "escrow holder," whose duty it is to assure that no funds or property will change hands until all instructions have been carried to completion.

1. ABOUT THE ESCROW PROCESS
What is escrow?
Escrow is a service which provides the public with a means of protection in the handling
of funds and/or documents. Escrow enables the buyer and the seller to transact
business with each other through a neutral party, thereby minimizing their risk.
In the escrow, all parties involved give their instructions to this neutral intermediary, the
"escrow holder," whose duty it is to assure that no funds or property will change hands
until all instructions have been carried to completion.
What types of transactions go through escrow?
Most contracts that involve the transfer, lease or financing of real or personal property
can be placed in escrow. You may be involved in escrow not only when you buy or sell a
home, but also when you buy a mobile home, sell a business or transfer stock in a
closely held business. Prizefighters have even been known to have their purses
guaranteed through an escrow depository. The buyer or seller should demand the
protection of escrow for any transaction which involves a substantial investment.
Why do I need escrow?
Whether you are the buyer or the seller, you want assurance that no funds or property
will change hands until all of your instructions have been followed. With the increasing
complexity of business, law and tax structures, it takes a trained professional to
supervise the transaction.
Who handles the escrow transaction?
The escrow officer is a trained and experienced professional. He or she can provide you
with the assistance required to close your transaction quickly and effectively. This
professional person may, under the terms of the instructions, make the decision that the
conditions of escrow have been met, and then order the transfer of the affected real or
personal property to the interested parties.
Many escrow officers proudly display their professional designations of certification and
show these designations on their business cards and letterhead. The designations
indicate that this person has met the high standards of education and experience
required for certification by the California Escrow Association.
Crossroads Escrow Services, Inc. 20955 Pathfinder Road #160 Diamond Bar, CA 91765 Office: 909) 843-6415 Fax: (909) 843-6474
Email: dallen@crossroadsescrow.net Website: http://www.crossroadsescrow.net

2. As a seller entering into escrow, what must I do?
To be fully prepared when you enter the transaction, you should have sufficient
information relative to your ownership available. This would include information
concerning any loans, taxes, insurance and, if appropriate, rental data. Items which
would be the sources of this information are your original deed or title policy, fire
insurance policy and a year-end statement from the existing lender. A copy of the most
recent structural pest control report may be helpful, or in some cases even required, in a
real estate transaction.
As a buyer entering into escrow, what must I do?
If the transaction is contingent upon a new loan, it is your responsibility to arrange this
loan. Your real estate agent can be most helpful in obtaining a lender, since he or she is
more knowledgeable about which lenders are currently active and their financing terms.
The instructions are ready--now what?
When the escrow instructions have been prepared, read them carefully to determine
that they are complete and properly reflect your total agreement. If you have any
questions or corrections, discuss them with the escrow holder before signing. Once the
instructions have been signed, they become the basis for the conduct of the escrow.
Can I get legal advice from the escrow officer?
An escrow officer is not a legal counselor and cannot give you advice. Remember, the
purpose of escrow is to take, and comply with, instructions to carry out the mutual
agreement of the principals. In the event of disagreement of the parties, the escrow
officer must remain neutral until agreement is reached. The transaction should not be
negotiated in the escrow office, nor should an escrow officer become involved in the
negotiation.
If I still have questions about the transaction, where can I go for
answers?
If negotiations have been conducted through a real estate agent, that person or his/her
broker, should be your primary consultant.
The role as an independent agent prohibits the escrow officer from answering many of
your questions. However, a knowledgeable escrow officer, whose responsibility is giving
impartial service to all the parties, will refer you to the proper source for your answers.
An escrow officer will often suggest that the customer seek the advice of legal counsel
or a tax consultant.
What happens at the closing?
When instructions of all parties to the escrow have been carried out, the closing can
take place. All outstanding funds are collected at this time and all costs must be paid.
Title to the property, whether real or personal, will then be transferred. All specified
documents are recorded or filed at this time.
Crossroads Escrow Services, Inc. 20955 Pathfinder Road #160 Diamond Bar, CA 91765 Office: 909) 843-6415 Fax: (909) 843-6474
Email: dallen@crossroadsescrow.net Website: http://www.crossroadsescrow.net

3. What fees must I pay at closing?
Fees and charges are controlled by many factors and depend largely upon the type of
transaction and the terms of your agreement. However, there are certain charges which
are considered to be normal. These would include fees charged by a lender in
connection with obtaining a new loan or in paying off the old one. They may also include
recording fees, title insurance policy premium, documentary transfer taxes, prepaid
taxes and insurance and escrow fees. Your escrow officer will provide you with an
itemized statement.
Your closing funds should be in the form of a wire transfer or a cashier's check made
payable to the escrow holder in the amount requested. Do not bring a personal check to
close a transaction. It will only delay the closing, since the funds must be collected
before the closing can take place. An out-of-town check can cause a week to ten days
delay in closing.
What is the fee for the escrow service?
The escrow fee is normally based on the size and complexity of the transaction. Since
there are so many types of escrows and every transaction is different, there are no set
fees. Usually the escrow fee is divided in accordance with the agreement of the parties.
The closing is complete--now what?
Upon closing, review the closing statement to determine that the costs were allocated in
accordance with your instructions.
It normally takes a period of time after closing before the hazard and title insurance
policies can be delivered to you. Any recorded documents to which you are entitled will
be mailed to you after the escrow has closed. Frequently these documents will come to
you directly from the office of the recorder or the Secretary of State in the case of
personal property filing.
What if the transaction isn't completed? Is my deposit refundable?
Who pays the fees?
When a transaction fails to close, a cancellation agreement must be reached between
the parties. This cancellation agreement must be put in the form of a written instruction,
just as your contract was.
Since the deposit is part of the escrow contract, both the buyer and the seller must
mutually agree to its disposition. Instructions for the disposition of this deposit should
include, among other things, provisions for payment of charges incurred during the
escrow. This would include fees and costs incurred by the escrow holder and charges
such as loan processing and title insurance fees as specified in the escrow instructions.
Crossroads Escrow Services, Inc. 20955 Pathfinder Road #160 Diamond Bar, CA 91765 Office: 909) 843-6415 Fax: (909) 843-6474
Email: dallen@crossroadsescrow.net Website: http://www.crossroadsescrow.net

4. The escrow officer DOES ...
· Serve as the communication link to all parties in the transaction.
· Prepare escrow instructions.
· Request a preliminary title search to determine the basis upon which a title insurance policy may
be issued.
· Request a beneficiary's statement or pay-off demand relating to existing financing.
· Comply with lender's requirements, specified in escrow agreement.
· Receive purchase funds from the buyer.
· Prepare or secure the deed or other documents related to escrow.
· Prorate taxes, interest, insurance and rents according to instructions.
· Secure releases of all contingencies or other conditions as imposed on any particular escrow.
· Record deeds and any other documents as instructed.
· Request issuance of the title insurance policy.
· Close escrow when all of the instructions of buyer and seller have been carried out.
· Disburse funds as authorized by instructions, including charges for title insurance, recording fees,
real estate commissions and loan payoffs.
· prepare final statements for the parties accounting for the disposition of all funds deposited in
escrow
The escrow officer does NOT ...
· Offer legal advice.
· Negotiate the transaction.
· Offer investment advice.
California Escrow Association
The California Escrow Association is a statewide organization for professional escrow practitioners. It is
dedicated to maintaining the highest standards in escrow through continuing education of escrow personnel.
Founded in 1924 in Los Angeles as a local group, CEA became a statewide association in 1956.
CEA offers the only statewide program for professional designation of escrow officers based on
comprehensive examination. The designations include Certified Senior Escrow Officer (CSEO),
Certified Escrow Officer (CEO), Mobile Home Specialist (MHS), and Bulk Sale Specialist (BSS).
CEA works with community colleges throughout the state to develop a CEA- approved curriculum
leading to a certificate in Escrow.
All members of CEA are pledged to observe a Code of Ethics which assures you of the highest
integrity, knowledge and competence in every escrow transaction.
California Escrow Association
530 Bercut Drive, Suite G
Sacramento, CA 95814
(916) 325-0600
Crossroads Escrow Services, Inc. 20955 Pathfinder Road #160 Diamond Bar, CA 91765 Office: 909) 843-6415 Fax: (909) 843-6474
Email: dallen@crossroadsescrow.net Website: http://www.crossroadsescrow.net