Escrow: Now What?

Congratulations, you are on your way to owning your very own home! Follow these suggestions (and your Realtors’s advice) so that escrow and settlement with go as smooth as possible.

You will be asked for a down payment on the home you are purchasing. You can choose to put down as much or as little as you want (depending on your mortgage), but remember, the more you put down toward the total price of your home, the less time it will take you to pay off and the less your mortgage payments will be every month.

During this period of purchasing your home, you are going to need an escrow or settlement company to act as an independent third party so that you know when and who to give your money to get the deed to your new home. The escrow or settlement company will hold your deposit and coordinate much of the activity that goes on during the escrow period. This deposit check may also be held by an attorney or in the broker’s trust account. Make sure that there are sufficient funds in your account to cover this check.

The deposit check will be cashed. Assuming the sale goes through, this money will be applied to the purchase price of the home. If for any reason the sale is not consummated, you may be entitled to receive all of your deposit back, less standard cancellation fees. In certain instances, the seller may be able to retain this money as liquidated damages. Prior to executing a purchase contract, it would be wise to speak with your counsel regarding whether or not it is your best interest to have a liquidated damages clause as part of the contract.

During this time, each item specified in the contract must be completed satisfactorily. By the time you have opened escrow, you have come to an agreement with the seller on the closing date and the contingencies. Each contract is different, but most include the following: 1. Inspection contingency: this should be completed as soon as possible after the contract to purchase is signed as unsatisfactory results of the inspection may mean that you will want to cancel the contract.

Once the contract is signed, you have a period of time to secure funding. If, for any reason, you are unable to secure funding during the period of time granted to you by the contract (and the seller will not provide a written extension of time), you must decide whether you want to remove the contingency and take your chances on getting a loan. You may choose to cancel the purchase contract.

With an attorney or title officer, review the title report. The title must be “clear” to ensure that you do not have legal issues regarding your ownership. Check into local and state ordinances regarding property transfer and make sure that you and/or the seller have complied with them.

This will probably be required before you can close the sale. Due to such requirements as special fire and earthquake insurance, obtaining this insurance may require a lengthy period of time. It would be in your best interest to apply for insurance as soon as possible after the contract is signed.

To schedule to have service turned on when you close escrow.

At this time, you should make sure that the property is exactly as the contract says it should be. What you thought to be a “permanently attached” chandelier that would come with the property might have been removed by the seller and replaced with a different fixture entirely.

You’ve made it! Once the sale has closed, you’re the proud owner of a new home. Congratulations!

Reach out today with any questions.
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Carnell Webb

I am a Tulsa, Oklahoma native, but I’ve lived in Dallas for well over 20 years.

I have been in the business since 2013 and am a former Verizon Senior Business Sales Executive, educated in Computer Information Systems.

I’m a full-time real estate agent headquartered in the Aubrey, Texas, area of North Texas, providing service in Denton and surrounding counties – specializing in Residential sales. 

Stacey Booth

Stacey was born and raised near South Padre Island, Texas. She has been married to Bobby Booth for 30 years and has two daughters, Allyson and Amanda. Allyson recently married Konner Miller in February and Amanda will be headed to the University of Arkansas, Fall 2022.

She was an Office Manager for Woolam Gin for 10 years and graduated with a bachelor’s degree in Kinesiology. She taught 2nd grade for 7 years before moving to Mena, Arkansas to open Black Bear Cabin Rentals in 2012. The best part of building a business from the ground up like Black Bear Cabins, was seeing it go from a concept to a thriving business. Her favorite part of the job was making connections with all of her customers.

The reason Stacey got into real estate is because she has always loved helping people and what better way to help people than to find the perfect place to call home. After selling Black Bear Cabins in 2020, she considered doing it then, but still had one of her daughters at home. Since her youngest daughter will be starting college in the fall, she knew this was the perfect time to start her new career. She has always loved the one-on-one personal contacts she has made with people, whether it was with her customers, students, or parents.

Her goal is to work hard for her clients whether it is through the purchase a new home or the sale of a current home. Her number one priority is to provide an experience where the customer feels valued and well taken care of.

Kristen Lewis

I was born and raised in Dallas and have lived in Cedar Hill for 15 years. I have been married to my high school sweetheart for 15 years, and we have 3 beautiful children ages 7, 9 & 11.  

 

I have been in the multi-family industry for 16 years where I’ve had several roles. I started as a construction admin, and then moved to an Assistant Business Manager/ Business Manager Onsite. I am currently a Cost Accountant for all new construction in the Dallas/Fort Worth area. 

 

I am excited to switch gears toward my own business in Real Estate, where I will focus in the Cedar Hill, Midlothian, Waxahachie and surrounding areas. 

 

I just started my journey into Real Estate in November 2021, and I am excited to begin!

Shawna Martinez

Real estate is in my DNA! Second generation Realtor born and raised in North Texas. We know that no two clients are the same, so why work with someone who treats you that way? 

We offer concierge next level customer service. Do you need movers? We can help with that! Do you need your yard maintained? We can take care of that too! Maybe you need accommodations for your fur babies… or real babies…. we understand your needs are unique. 

We pride ourselves in building a relationship over a transaction, so whatever your needs are, we can help! Whether you are buying for your primary residence, second home, or investment property our team of experts will provide you with the most phenomenal customer service! Don’t get trapped in the ‘one size fits all’ Ferris Wheel of real estate. It truly matters who you choose to work with!