Escrow Challenges

Today I attended real estate training on common issues that create problems closing transactions in escrow. The training provided brokers with ways that they could create smooth closings for their clients. The "dirty dozen" issues we discussed focused solely on page one of the NWMLS Purchase and Sale agreement (PSA), which is commonly used to close real estate transactions in Washington State.

The issues ranged from the most basic (make sure it is legible!) to the most obscure (why some title companies may not issue the homeowners title policy, even though it is called for in the PSA). The dirty dozen were as follows:

1) Identifying the Buyer and Seller
2) Identifying the Property
3) Personal items included in the Sale
4) What is the actual Purchase Price?
5) What forms release Earnest Money?
6) Identifying the Title Insurance Company
7) Identifying the Closing Agent
8) Specifying a Closing Date
9) Services of Closing Agent for the Payment of Utilities
10) Charges and Assessments Due After Closing
11) Addenda to the PSA
12) Getting Signatures and Contact Information

Some of the questions that were addressed included:
How will the buyers take title?
Who is the Title Company insuring?
What is the Seller selling? What is the Buyer buying?
What is the difference between a "Trio" (or listing package) and a Preliminary Title Report?
What are the issues with including personal property in the sale of real property?
What if there is a dispute around earnest money disbursement?
When should Title be opened? Why is the title # important?
What liens and encumbrances are on title?
Who collects buyer and seller signatures?
Who fills out the Form 22K listing utilities?
Who makes the decision to close early?
Who orders the home warranty?
Who is liable if there are unpaid utilities after closing?
How do you know if there are Charges and Assessments relating to the Subject Property?
Does the Seller have the authority to sell the property?
Is the Listing Broker using the correct legal description?

Not knowing the answers to these questions may jeopardize your real estate deal. For more information on any of these items, please feel free to message me privately at HomeLandInvestment@gmail.com or call my 24/7 real estate hotline at 888-621-4999.

Happy Investing!