What I Do for Buyers: Monitoring the Escrow Documents
Prior to the transfer of property, I personally review all escrow documents; I have an escrow coordinator review them and I have my mortgage broker review them. This three-step escrow process often leads to transaction file that is four to five inches thick with disclosures, inspection reports, the contract, addenda to the contract, and counter offers.
It’s important to realize that if you ever go to court over a disclosure issue, and you are unable to provide the court with documentation, signatures of all sellers, and a date on which the disclosure was made, your case will be a difficult one to win. I make sure that this NEVER happens to my clients.
Of particular importance is the third page of the transfer disclosure document. Each real estate agent involved in the transaction does a diligent visual inspection of the property. If a seller were to sign and date the document prior to the agent’s inspection date, a court might make a judgment stating that the visual inspection was never disclosed to you prior to the close of escrow. Thus it’s critical to involve a realtor at the early stages of the process of selling your home, in order to assist with any legal issues related to disclosures that might arise at a later date.
