What is escrow?

In a real estate transaction, escrow generally refers to an arrangement in which certain funds, documents, and transaction information are handled according to applicable instructions and requirements as the transaction progresses toward closing.

When is escrow opened?

Escrow or a closing order is generally opened after the parties have entered into a real estate transaction and the necessary transaction information has been provided to begin the title and closing process.

Who is involved in the escrow process?

Depending on the transaction, the process may involve buyers, sellers, real estate professionals, lenders, title and settlement professionals, and other applicable parties.

How long does escrow take?

The timeline varies depending on the transaction, financing, title matters, documentation, lender requirements, and other circumstances. Not every transaction follows the same timeline.

What information may be needed to open escrow?

Requirements vary by transaction but may include the purchase contract, property information, buyer and seller information, lender information, payoff details, contact information, and other applicable transaction documents.

What happens to funds associated with the closing?

Applicable funds are handled in accordance with transaction instructions, closing requirements, and applicable procedures. Parties should carefully follow the specific funding instructions provided for their transaction.

What is a title search?

A title search involves researching applicable public records and other title information to identify ownership interests, liens, encumbrances, and other recorded matters that may affect title to the property.

What is title examination?

Title examination involves reviewing applicable title information identified during the title process to evaluate matters that may affect the transaction or the issuance of title insurance.

Why is title important in a real estate transaction?

Title relates to legal rights and interests associated with real property. Understanding applicable title matters helps identify issues that may need to be addressed as a transaction moves toward closing.

What kinds of matters may appear in a title search?

Depending on the property and available records, a title search may identify mortgages, liens, easements, restrictions, judgments, ownership interests, and other recorded matters affecting the property.

What happens if a title issue is identified?

The appropriate next steps depend on the specific matter and the transaction. Applicable parties may need to provide additional information, documentation, releases, satisfactions, or other items before the transaction can proceed.

Is a title search the same as title insurance?

No. A title search is part of the process of researching applicable title information. Title insurance is a separate insurance product that provides protection against certain covered title risks, subject to the terms of the applicable policy.

What is title insurance?

Title insurance is a form of insurance designed to provide protection against certain covered title risks affecting an insured owner’s or lender’s interest in real property, subject to the terms, conditions, exclusions, and exceptions of the applicable policy.

What is the difference between an owner’s policy and a lender’s policy?

An owner’s title insurance policy is designed to protect the insured owner’s interest in the property. A lender’s title insurance policy is designed to protect the insured lender’s security interest. They protect different insured interests.

Does a lender’s policy protect the property owner?

A lender’s title insurance policy protects the insured lender’s interest and does not substitute for an owner’s title insurance policy.

Is title insurance required?

Requirements depend on the transaction. A lender may require a lender’s title insurance policy when financing is involved. Requirements concerning an owner’s policy may differ.

Does title insurance cover every title problem?

No. Title insurance coverage is determined by the specific policy and is subject to its terms, conditions, exclusions, exceptions, and other applicable provisions.

Is title insurance the same as homeowners insurance?

No. The two serve different purposes. Title insurance addresses certain covered title-related risks, while homeowners insurance generally addresses different risks involving the property and certain future events.

What happens before closing?

Before closing, applicable title matters, documents, lender requirements, settlement information, funds, and other transaction details may need to be reviewed and coordinated.

What happens at closing?

Depending on the transaction, applicable documents are executed, required funds are coordinated, and other settlement activities take place as the transaction moves toward completion.

What should I bring to closing?

Requirements vary by transaction. You may be asked to provide acceptable identification and other applicable documentation. Always follow the specific closing instructions provided for your transaction.

How should I send funds for closing?

This question is particularly useful because of wire fraud.

Follow only the verified funding instructions provided through the appropriate closing process. Before sending funds, independently verify wire instructions using a trusted contact method. Be cautious of unexpected emails or last-minute changes to wiring instructions.

Can closing requirements change?

Yes. Additional information or documentation may become necessary as title matters, lender requirements, transaction details, or other circumstances are reviewed.

When is a transaction considered complete?

Completion depends on the applicable transaction and closing requirements. Signing documents alone does not necessarily mean that every closing, funding, recording, or post-closing requirement has been completed.

Who should I contact if I have a question about my transaction?

Contact the appropriate member of the Fitch Title Agency Inc. team handling your transaction. Depending on the question, coordination with your real estate professional, lender, attorney, or another applicable professional may also be appropriate.

Are all real estate transactions handled the same way?

No. Requirements can vary based on the property, parties, financing, transaction type, title matters, applicable instructions, and other circumstances.

Does Fitch Title Agency Inc. provide legal, tax, or investment advice?

Fitch Title Agency Inc. provides title, escrow, and closing-related services and general educational information. Questions requiring legal, tax, financial, or investment advice should be directed to an appropriately qualified professional.

Can Fitch assist with both residential and commercial transactions?

Fitch Title Agency Inc. provides title and closing support for applicable residential and commercial real estate transactions. Specific services and requirements depend on the transaction.

Can Fitch assist with refinance transactions?

Yes. Fitch Title Agency Inc. can provide applicable title and closing coordination for refinance transactions, including coordination of applicable title information, lender requirements, payoff matters, documents, and closing details.

How do I open escrow?

To begin the process, provide the applicable transaction information and documentation needed to establish the order. Visit our Open Escrow page or contact our team for assistance with your transaction.