Title Companies

Title Companies

  • There are several title companies in Northern California that are available to assist with the escrow of a purchase, refinance, quit claim deed or any type of real estate transaction. In a transaction it is up to the party that is paying the fees to choose which Title company they want to use as it is negotiated in the Purchase Contract. Usually, the title company that has been selected is one that has been used in the past or is a recommendation.


  • The deposit of instruments and funds with a neutral third, which instructions (an obligation between two or more parties) to carry out the provisions of an agreement or contract.

General Provisions

  • The essentials of a valid escrow is that there is a binding contract between buyer and seller and that there is a conditional delivery
    of transfer instruments. The following are questions that are asked by the escrow officer during escrow

    • Vesting of title – After escrow is open.
    • Possession – The close of escrow.
    • Repairs – If buyer wants to make repairs to the property before escrow closes or move in that will be required in writing from seller.
    • Escrow Instructions – That are signed by seller and buyer.
    • Termite Report – If buyer wanted to pay for the repairs.
    • Escrow Officer – Authorized to call for the funding of the buyer’s loan, can make changes to the terms of the sale on written instructions of buyer and seller, without the agent’s approval or if buyer decides to move in before escrow closes, he is a tenant, and would sign and interim occupancy agreement.


  • Taxes, insurance, interest (recurring costs), and rent are usually prorated to the close of escrow. Unsecured debts are not prorated (utilities, credit card, medical bills, taxes, liens). The basic idea of proration is to charge the seller for his share of the use of these items and to charge the buyer for his share. There are two steps involved:
    • Establish who is to be charged and on whose closing statement the item will appear as a debit.
    • Calculate the money involved.
The lender must deliver to the borrower and information booklet (“The Settlement Costs”) and the good faith estimate of costs involved within 3 days after the loan application is received.
The lender must also provide a “Uniform Settlement Statement” stating all settlement costs. This must be delivered “AT OR BEFORE” settlement 1 day before escrow closes.

Designed and developed by Saumil Nagariya