Title Insurance

11 What is Escrow? Escrow is a closing service which handles the funds and documents involved in the property transaction. Escrow enables the buyer and seller to transact business with each other through a neutralparty. The “escrow holder” typically receives purchase funds from the buyer for deposit in an escrow account, prepares the deed or other documents, pro-rates taxes, interest, and insurance according to the escrow instructions, secures release of any contingencies imposed in the escrow, records deeds as instructed, requests issuance of the title insurance policy, prepares final accounting statements for the par- ties, disburses funds as authorized by the escrow instructions, and closes escrow when all of the escrow instructions of buyer and seller have been carried out. Historically, the escrow process is handled differently in Northern and Southern California. In Northern Cali- fornia, title insurance companies tend to handle all title and escrow services in the same transaction. In Southern California, the title and escrow transactions are separate with escrow being provided by banks, escrow companies, or title companies. Practices and prices will vary from county to county, so be sure you understand your individual transaction. (See Terms of Title Insurance on page 14 for a description of Escrow Sale fees or Escrow Loan Fees.)