What stays the same
Escrow’s role doesn’t change when there are no agents. Advantage One Escrow still holds the deposit in trust and prepares the Escrow instructionsThe written, signed directions that tell escrow exactly what to collect, prepare, pay and record.More in the glossary. We still order the title report and loan payoffs, split property taxes by date, arrange signing and pay everyone after the deed records.
The escrow fee follows the same published schedule. The owner’s savings come from the real estate commission, which sits outside escrow.
What changes
In an agent sale, the agents write the contract and explain the forms. They also coordinate inspections and the key handoff. Without agents, the buyer and seller handle that work themselves or hire someone who can.
Escrow can’t fill that gap. We’re neutral. We can explain what an escrow document does and what step comes next, but we can’t negotiate for either side or give legal advice. That limit can feel frustrating. It is still the line we have to hold.
The purchase contract
Escrow can’t write or supply your purchase contract. The buyer and seller agree on the contract, and many people have a real estate attorney draft it or review it.
Once both sides sign, send us the contract and we’ll open escrow from it. Make sure it states the price, deposit, closing date and any ContingencyA condition in the purchase contract, such as the loan or an inspection, that lets the buyer cancel if it isn’t met.More in the glossary deadlines.
A clear contract saves trouble later. Vague terms are hard to turn into escrow instructions that both sides will sign.
Opening escrow
To open escrow, send us the signed contract and each party’s contact details. The seller should also send the names of any lenders on the home so we can order payoffs.
The buyer then sends the deposit after calling to confirm the wiring instructions.
Who pays what
In an agent sale, the contract says who pays each closing cost. Put those choices in your contract too.
In Orange County, the usual custom is that each side pays its own escrow fee. The seller pays for the owner’s title policy and the Documentary transfer taxA tax charged when property sells: $0.55 for each $500 of the price, which is $1.10 per $1,000.More in the glossary. Your contract controls.
The title report and the buyer’s loan
The title company still searches the records and issues a preliminary report. Without an agent to read it with you, ask your attorney about anything you don’t understand.
If the buyer is borrowing, the lender has its own requirements, including an appraisal. The lender works with escrow directly, as in any sale.
An owner sale follows the same timeline as any other sale. The dates in your contract drive it. Our guide to the California escrow timeline explains the usual steps.
Disclosures
California requires sellers to disclose known facts about the home that affect its value or desirability. That duty applies with or without an agent.
The state has standard disclosure forms, including a transfer disclosure statement and a natural hazard disclosure. If you aren’t sure what to disclose or which forms apply, ask a real estate attorney.
The deposit
The buyer’s deposit goes to escrow, never to the other party. Escrow holds it in a trust account and gives a written receipt.
Buyers: before you wire it, call your escrow officer at a number you found yourself. Our main line is (714) 962-0999.
Inspections, repairs and the walk-through
Without agents, the buyer arranges inspections directly with the seller. Put repair requests and answers in writing, signed by both of you. If they change the deal, send them to escrow as a signed AmendmentA signed change to the escrow instructions.More in the glossary.
The final Final verification of condition (walk-through)The buyer’s last look at the home before closing, to confirm its condition and any agreed repairs.More in the glossary lets the buyer confirm the home’s condition before closing. Agree on a time in advance.
Signing and closing
Signing works as it does in any sale. Each side signs in front of a Notary acknowledgmentA notary’s signed statement confirming the identity of a person who signs a document that will be recorded.More in the glossary with a current photo ID, usually in the last week or so before closing.
The sale closes when the deed records at the county. Escrow then pays out the money as the instructions direct.
If the buyer and seller disagree about the deal along the way, escrow can’t settle it. We follow the signed instructions and wait for both sides to agree in writing. An attorney can advise you.
Keys and moving day
Escrow doesn’t hand over keys. The buyer and seller agree on when and how the keys change hands, usually once the deed records.
Put the possession date in the contract. If the seller needs to stay after closing, put that agreement in writing too.
Wire fraud still applies
Fewer people in the email chain doesn’t mean less risk. Criminals target owner sales too.
We will never email or text you new or changed wire instructions. Before you wire money, call us at (714) 962-0999.
Our wire instructions don’t change. Treat any message saying they have changed as fraud.