Seller’s Escrow Guide: What to Expect After Opening Escrow
🏡 Seller’s Escrow Guide: What to Expect After Opening Escrow
Congrats on opening escrow! As the seller, here’s a step-by-step breakdown of what happens next and how to prepare:
🔑 1. Escrow Is Opened
You’ll receive a package from escrow (via email or DocuSign) containing key documents to complete, such as:
Statement of Information
Escrow Instructions
Grant Deed or Trust Documents
Wire Instructions for Your Proceeds
💵 2. Buyer Deposits Earnest Money
The buyer typically wires their Earnest Money Deposit (EMD) within 3 business days.
Escrow will confirm receipt to both parties.
🕵️ 3. Buyer’s Contingency Period Begins
The buyer now completes their due diligence, which usually includes:
Home Inspection – Inspectors or contractors may visit.
Appraisal – Ordered by the lender (if financing).
Loan Approval – Buyer works with their lender.
Disclosure Review – You’ll provide all required disclosures.
📝 4. You Provide Disclosures & Reports
Your agent will help coordinate and submit:
TDS, SPQ, Lead-Based Paint Disclosure (if applicable)
Natural Hazard Disclosure (NHD)
Preliminary Title Report
🔧 5. Negotiations (If Any)
After inspections, the buyer might request repairs, credits, or price adjustments.
Your agent will help you review and respond to any requests.
✅ 6. Contingency Removals
As deadlines pass (usually 14–17 days), the buyer will formally remove contingencies such as:
Home Inspection
Appraisal
Loan Approval
Once removed, you’re one step closer to closing!
📦 7. Prepare for Closing
Escrow will schedule a notary appointment for your final signatures.
Plan to vacate the property by the agreed-upon date (often COE or 3 days after).
Don’t forget to cancel insurance and utilities as of the close date.
💰 8. Closing Day
Buyer wires the remaining funds.
Escrow ensures all conditions are met.
Title is transferred, the sale is recorded, and you receive your proceeds — via wire or check.