Five Steps to the Escrow Process

Title insurance companies also provide efficient, affordable escrow services in Oregon, as they do in most western states. Once a real estate sale agreement is ready, the title company follows these general steps:

Step 1: Open Escrow

• Contract documents and escrow instructions delivered to and reviewed by escrow officer.
• Earnest money deposited.

Step 2: Order Title Search

• Title officer reviews documents in the chain of title, property and subdivision maps, tax data, court filings, and results of judgment and lien searches.
• Title officer issues Preliminary Title Report and distributes copies to principals, agents, escrow officer, and new lender.

Step 3: Request Payoffs

• Escrow officer requests payoff demands for loans and other nontransferable items shown on Preliminary Title Report.
• Requests clarification of other liens, title exceptions, HOA assessments, and reviews property taxes.

Step 4: Prepare Documents

• Escrow officer gets loan documents from lender.
• Reviews file to determine that all escrow instruction conditions met.
• Requests hazard insurance binder.
• Computes closing costs; prepares estimated closing statement and final escrow and title documents.

Step 5: Close Escrow

• Buyer deposits balance of funds. Principals sign closing documents.
• Title officer checks for recent lien filings, updates status of title, and issues title policy.
• Title documents sent to recording, pending authorization to record.
• Loan documents returned to lender for review and approval to record.
• Title deed and deed of trust recorded and loan funds released.
• Escrow disburses funds, distributes final statements and documents.