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Buyer Representation: Escrow Process Guide

Congrats on helping your buyer get into escrow!

Use the guide below to navigate the escrow process smoothly and ensure everything is in order for a successful closing. Follow these steps while staying in close contact with your client, your escrow officer, and your lender. 

Important Key Dates

Here are the important dates you and your buyer should be aware of. It’s a good idea to send these dates to your buyer after opening escrow. Not sure how? Not to worry, we have a Buyer Opening Email template available for you in the Document Center (or click here to access).  

Before sending, ALWAYS check the actual day allowances in your contract. These are the default dates, but sometimes dates may be different per the terms of the contract.

  • Acceptance Date (Day 0) – The date the fully executed RPA or counter is delivered to the buyer/seller/agent making the offer or counter.
  • EMD Due – No later than 5pm on the 3rd business day from acceptance.
  • Disclosures Due – Within 7 days after acceptance.
  • Inspection Period Ends – 17 days after acceptance.
  • Contingency Removal – Inspection and loan contingencies must be removed by Day 17.
  • Final Walk-Through – Within 5 days of closing.
  • Close of Escrow – As per the date on the contract.

Contract Acceptance & Skyslope Transaction

Once your buyer’s offer is accepted, you’ll need to upload the fully executed RPA (and any counters) to Skyslope within 3 calendar days. Make sure the "subject to counter" boxes are marked if counters are included.

Send the signed contract and escrow info to your buyer’s lender right away so they can order the appraisal. 


Opening Escrow & EMD

The listing agent usually opens escrow. Once it’s active, you’ll receive an email with the escrow number and contact details. Make sure this information is sent to the lender.

Have your buyer take their Earnest Money Deposit (EMD) check to escrow within 3 business days. If this is difficult for your buyer, contact escrow for alternate arrangements like a courier or overnight FedEx. If the buyer is wiring the EMD, ask escrow to send wire instructions directly to the buyer. NEVER receive or forward wiring instructions on behalf of your buyer. 

You should receive an opening escrow package within 7 days. If you don’t, contact your escrow officer. The package will include an NHD (Natural Hazard Disclosure), Preliminary Title Report, Commission Instructions (Broker Demands to be signed by a file auditor), and the EMD receipt. 

Once you have the package:

  1. Send the NHD and Preliminary Title Report to your buyer for review and signature. 
  2. Send Broker Demands/Commission Instructions to a file auditor and send back to escrow (see Broker Demands article for more information). 
  3. Upload all signed documents to SkySlope as soon as possible.

Scheduling Inspections

Make sure your buyer schedules their inspections promptly, including:

  • Home inspection
  • Pest inspection
  • Any other property investigations your buyer may need or want (roof, HVAC, etc.)

After inspections come back, it’s time to review findings with your buyer. Have your buyer sign all reports from inspections, upload to the checklist in Skyslope and send a copy of these reports to the seller. Discuss if any repair requests should be made to the seller based on inspection results.The inspection contingency should be removed by Day 17 unless otherwise stated in the RPA. If you need more time to resolve repair issues, request an extension using the ETA form. 

Remember, you are not a contractor or inspector. If your buyers have questions about the interpretation of a report, have them contact the inspector directly. 


Disclosures

Disclosures should be provided by the seller within 7 days. If they’re missing, follow up with the listing agent. 

Once you have them, review disclosures with your buyer (the home inspection is a great time to do this, or set up a visit or call). Also, complete the Agent Visual Inspection Disclosure (AVID) and send it to the listing agent for signature. Be sure to upload all signed disclosures to Skyslope as soon as possible.

Never send your disclosure package for digital signatures without first sending it via PDF. PDFs are much easier to review, and sending the document by PDF makes it much less likely that your client can claim they never read a report. 


Communication with the Lender: Appraisals and Loan Contingency

If your buyer is obtaining a home loan, make sure to communicate with the lender throughout the process. 

The lender orders the appraisal and the listing agent typically schedules a time for the appraiser to view the home. If the appraisal results are delayed, contact the lender for an update and work with the lender to decide if an extension is needed. If the appraisal comes in lower than needed to fund the loan, work with the buyer and lender to decide how to proceed. If the appraisal comes in higher than the contract amount, do not disclose that info to the seller unless the buyer instructs you to do so, as this may negatively impact any negotiating leverage your buyer may or may not have. 

You should never advise that your client remove their loan contingency until the buyer has full loan approval. Always confirm with the lender that underwriting approval is complete before removing this contingency. If the buyer hasn’t received underwriting approval by Day 17, request an extension to protect the buyer’s deposit. 

Closing Preparation

Once all contingencies are removed, it's time to prepare for closing! 

If your buyer is working with a lender, follow up with the lender about the Closing Disclosure (CD). Confirm it’s been sent to the buyer a week before closing. Once the CD is signed by the buyer, there’s a 3 day waiting period before they can sign loan documents. 

Schedule and complete the final walk-through inspection, which should happen 1-5 days prior to close of escrow. 


The Closing Process (Sign, Fund, Record)

There are three steps in closing:

  1. Sign – Buyer signs the loan documents.
  2. Fund – Buyer’s and lender’s funds must be received by escrow (usually by 1 pm) for same-day recording.
  3. Record – Once the funds are received, the transaction will be recorded with the County, and the buyer officially owns the property.

Possession

Once the property has been recorded, your buyer is ready to take possession (unless otherwise stipulated in the contract). 

You did it! Congratulations to you and your buyer on a successful transaction!