Escrow company

[nervousewreck]

Jurisdiction

California

Hi, We are in California.
We are selling our home and they want us to sign the grant deed prior to providing us our money. I understand that is standard and after "recording" they pay us.
I checked with the DFPI and the escrow company is licensed by them. But I cant find any info on insurance etc. The DFPI will not help, all they keep saying is that they are licensed.
My concern if they record and not give us our money. What can we do? Thank you

 

[zddoodah]

We are selling our home and they want us to sign the grant deed prior to providing us our money. I understand that is standard and after "recording" they pay us.

I assume "they" refers to the escrow company.

I cant find any info on insurance etc.

What sort of insurance?

The DFPI will not help, all they keep saying is that they are licensed.

The DFPI isn't going to have any information about insurance coverage (or any sort) carried by licensed escrow companies.

My concern if they record and not give us our money. What can we do?

Have you signed the escrow agreement yet? If so, did you read it before signing? Who picked the escrow company? Your realtor? The buyer's realtor? Someone else?

Your recourse would be to sue the escrow company, but I've never heard of anything like this happening, and I've been involved with hundreds of transactions involving escrow companies. You're certainly free to call the escrow company and ask for a copy of its E&O policy, but methinks you're being a bit paranoid here.

 

[nervousewreck]

I assume "they" refers to the escrow company.




What sort of insurance?




The DFPI isn't going to have any information about insurance coverage (or any sort) carried by licensed escrow companies.




Have you signed the escrow agreement yet? If so, did you read it before signing? Who picked the escrow company? Your realtor? The buyer's realtor? Someone else?

Your recourse would be to sue the escrow company, but I've never heard of anything like this happening, and I've been involved with hundreds of transactions involving escrow companies. You're certainly free to call the escrow company and ask for a copy of its E&O policy, but methinks you're being a bit paranoid here.

Thank you

 

[army judge]

The DFPI will not help, all they keep saying is that they are licensed.
My concern if they record and not give us our money. What can we do?

You could do what thousands of other people do daily, if they're cheated.

You could sue the party that cheated you out of your money.

That, however, is a very slow and cumbersome process, also time consuming and costly.

I'm not endorsing or suggesting you consummate the deal you're now rethinking.

In the end, that's YOUR decision to make.

"Whatever you do", my father was fond of saying, "do so with great deliberation, otherwise, haste usually leads to waste and want".

 

[adjusterjack]

I've bought and sold homes for 50 years using escrow companies and never once felt compelled to ask about their insurance.

In these modern times the American homebuyer/seller has a big advantage because of online review sites. Just search the name of the company combined with words like reviews or complaints and you'll find out what the experiences of other customers were.

 

[welkin]

We are selling our home and they want us to sign the grant deed prior to providing us our money. I understand that is standard and after "recording" they pay us.

I don't have any experience with escrow companies, except holding deposit money for the sale of property until the closing takes place. In the homes I have bought and sold, the deed is signed at the closing when the check is handed over to whomever is representing you (usually an attorney or a closing agent).

Recording a deed can take one to several months, depending on the county jurisdiction. Would you want to wait months to get your money. Once you sign the deed, it doesn't matter if it is recorded or not; you already transferred the property.

If it was me, I would say show me (or my agent/attorney) the check, I will sign the deed.

 

[zddoodah]

I don't have any experience with escrow companies, except holding deposit money for the sale of property until the closing takes place. In the homes I have bought and sold, the deed is signed at the closing when the check is handed over to whomever is representing you (usually an attorney or a closing agent).

Recording a deed can take one to several months

I know this is how it works in some states, but it's not how it works in California. In a standard residential real estate transaction, the buyer and seller typically have realtors/real estate agents but RARELY have attorneys. The buyer and seller jointly contract with an escrow company. The buyer and buyer's lender deliver funds to cover the purchase to the escrow company, and the seller delivers an executed grant deed. The buyer's lender will deliver a deed of trust, and whoever has encumbrances against the property will deliver reconveyances/releases. Subject to the specific escrow instructions, once escrow has received the money and necessary documents, it will record, in order, (1) the reconveyances/releases, (2) the grant deed, and (3) the new deed of trust, and then distribute the money as directed in the settlement statement (e.g., to those who had encumbrances that have been released, to the realtors, and to the seller). The recording of the documents is almost always done on the day of closing or the next day. I'd hate to be in a state where it takes "one to several months."

 

[adjusterjack]

zddoodah's explanation is also how it works in AZ.