To open escrow in California, send your escrow officer the fully executed purchase agreement with every counter offer and addendum, plus contact information for both agents, the buyer, the seller and the lender. Send it the day of acceptance, because the buyer's deposit is due within 3 business days on the default C.A.R. purchase agreement and every other deadline starts counting from acceptance.
A complete package on day one saves days later. Here is the list I ask agents to send, and why each item matters.
What contract documents does escrow need?
Start with the contract, all of it.
The signed Residential Purchase Agreement, every page, with initials
Every counter offer, including the final signed acceptance
Every addendum and advisory the parties signed
Any agreed changes to the deposit, closing date or contingency periods
Escrow instructions are drawn from these documents, so a missing counter means instructions that do not match the deal. If the final counter changed the price or the closing date, I need that page before anything else.
Which contacts should come with it?
Escrow coordinates a lot of people. Send names, phone numbers and email addresses for:
Both agents and their transaction coordinators
The buyer and the seller, with how each prefers to be reached
The buyer's loan officer and the lender's processor, if there is a loan
The seller's lender, with a loan number if possible, so we can order payoff demands
Any attorney, CPA or exchange intermediary the parties are using
What third-party choices should escrow know about?
Tell us what the contract says about:
Title company, if one was chosen
Home warranty company and plan, and who pays
Natural hazard disclosure provider
Termite or other reports the contract calls for
HOA management company, if the property is in an association
HOA documents and demands can take time, so the earlier we have the management company's name, the earlier we can request them.
What about trusts, LLCs and powers of attorney?
This is a common source of surprises at signing. If anyone is buying or selling as a trustee, an entity or through an attorney in fact, tell escrow on day one.
Trust: the trust's name and date and the current trustees. Title will usually ask for a certification of trust.
LLC or corporation: who is authorized to sign, and the entity documents that show it
Power of attorney: a copy of the document, so title can review it before signing day
A seller who has passed away or a trustee who has changed: tell us right away, because title may require recorded documents first
Title sets the final requirements. Getting these documents early means there is time to meet them.
What else belongs in the first email?
A few more items prevent delays later:
Commission instructions, as agreed in writing
Whether the seller is doing a 1031 exchange, with the intermediary's contact
Whether the buyer is doing one, so we know whose funds are coming from where
Any tenant, rent or deposit information if the property is occupied
Signing plans for anyone who will be traveling or out of the area
And one warning that belongs in every first email to a buyer: before wiring a deposit or closing funds, call Cal West at (323) 300-6122, using a number you already know, to verify the wiring instructions. Treat any emailed change to wiring instructions as fraud until it is verified by phone. Our post on wire fraud and the verify-by-phone call explains why.
What happens after escrow opens?
Once the file is open, escrow sends instructions to the parties, receives the deposit, orders the preliminary title report and requests payoffs and HOA documents. From there, the deadlines in the contract set the pace. Our post on a 30-day escrow, day by day walks through what comes next. If your clients are choosing an escrow company, they can also read about the difference between licensed and exempt escrow.
Our free Day-One Escrow Checklist has the day-one list, the week-one orders and a dates-to-calendar table. Download the PDF there and keep it in your files.
Questions agents ask
Can I open escrow before the contract is fully signed?
You can call ahead so escrow is ready, but instructions are drawn from the signed agreement. Send the complete package as soon as acceptance is delivered.
Who chooses the escrow company?
The purchase agreement states which escrow holder the parties agreed on. If it is blank or unclear, sort it out between the agents before the deposit is due.
What if the buyer cannot wire the deposit within 3 business days?
The deadline in the contract controls, and the parties can agree in writing to change it. Talk with the other agent early rather than letting the deadline pass.
Opening an escrow? Send Iris the fully executed contract at iris@calwestescrow.com or call (323) 300-6122.
