WHAT IS ESCROW?
Escrow is a period of time in which all the funds and documents involved in the transfer of property are verified. This is where First American steps in. We act as a “stakeholder” for the buyer and seller, carrying out both parties’ instructions and assuming responsibility for distributing the funds, handling all of the paperwork, and recording the deed, which transfers the title to you, the buyer.

HOW DOES ESCROW PROTECT ME?
Escrow protects all parties to a transaction. For example, in the case of a deposit, the buyer’s money is protected, while the seller sees evidence that the buyer’s interest is in good faith. The title company holds all monies, instructions, and documents necessary to the transaction; distributes the right amounts to the right parties; and sees to details such as recording the new deed.

HOW DOES TITLE INSURANCE PROTECT ME?
With First American Title Insurance, we insure you against loss from problems that arise due to past events that can either cloud the title (such as an owner who did not agree to a sale) or give rise to claims (such as a contractor who was not paid). Also, because we thoroughly research the property’s title history before underwriting the policy, the risk of surprises is dramatically reduced.

HOW DOES THE PRELIMINARY REPORT HELP ME?
The Preliminary Report helps you better understand the property you are buying. It contains a legal description of the property and, in some cases, an informational plat map, plus vital information on the current ownership of the property, the manner in which the current owners hold title, and matters of record that specifically affect the property or the owners of the property. It also tells you about recorded deeds of trust or mortgages, agreements, covenants, conditions, restrictions and other items that can affect the title. It is a report and statement of the type of title First American is willing to insure for that property.

WHAT IS A TITLE SEARCH?
We work to eliminate your risks by performing a painstaking search of public records and our own files, where public records, laws, and court decisions pertaining to the title to the property and the parties to the escrow are maintained. We carefully review records in order to determine the current recorded ownership, any recorded liens and encumbrances, or other matters of record that could affect the title to the property. When we're done, we issue a preliminary report detailing the status of the title we are willing to insure.

WHAT SHOULD I LOOK FOR IN THE PRELIMINARY REPORT?
Review this important document as soon as it arrives. (Or, if a thoughtful seller has already obtained one, get a copy and review it now.) Here are the main things to look for:

-		Correct names: Be sure the names of the owners are the same names as the sellers shown in the purchase contract. Sometimes the name of an unexpected owner will show up. For example, if you discover the name of a seller’s ex-spouse, or a deceased relative, corrective documents may be required.
-		Correct address: The plat map, if any, and legal description should match the address. This is important because an owner could own two properties adjacent to or across the street from each other, causing confusion in identifying the correct property.
-		Pertinent information: Read the informational notes for pertinent items about the property such as transfer taxes, monument fees, homeowners' association fees, etc.
-		Title exceptions: Carefully review the exceptions, such as current taxes, bonds, deeds of trust or mortgages, assessment district items and easements. Make sure none of the title exceptions interfere with your future plans for using the property. For example, an easement across the backyard could make it difficult to put in a swimming pool later.
-		Surprises: If you see any item you weren’t aware of, call First American immediately. Problem solving is what we do — and we go out of our way to do it quickly.

WHAT DOES TITLE INSURANCE COVER?
Title insurance helps insure against risks that can go undiscovered by a title search. These risks, sometimes called “hidden defects”, might not show up until many years later. A few examples:

-		A forged signature on a deed
-		Impersonation of the real owner
-		Mistakes of others or changes in the interpretation of wills or other legal document
-		Deeds delivered without consent of the grantor
-		Undisclosed or missing heirs
-		Deeds and mortgages signed by persons of unsound mind, minors, or by persons supposedly single but actually married

With First American Title Insurance, even if these hidden defects occur, you and your property will be protected.

It is necessary to remove all contingencies and certify your new property before the close of your home. The following are necessary steps to certify your house.

SCHEDULE AND ATTEND PROPERTY INSPECTIONS
Inspections are usually conducted within the first 15 days of escrow. A home inspection allows you to have complete and current knowledge about your prospective property.

PEST CONTROL INSPECTIONS
This is a critical inspection because this type of damage can be difficult to detect, and very costly to repair.  Make sure a licensed structural pest inspector examines the home for any evidence of problems such as termites, dry rot, earth-to-wood contact, excess dampness, and beetle infestation.  The inspector will provide you with a written report and a bid for any corrective work.

HOME/PROPERTY INSPECTION
This inspection covers major systems such as heating and air condition, structural elements such as foundation and roof, safety features and code compliance.

UNDERGROUND TANK INSPECTION
(specifically for San Francisco homes)
San Francisco requires an owner of real property to make a reasonable effort to locate and remove abandoned underground storage tanks (UST).  If found later, the UST removal becomes the responsibility of the current owner, and may be very expensive.

ADDITIONAL INSPECTIONS MAY BE REQUIRED BASED ON THE FINDINGS OF INITIAL INSPECTIONS
The buyer normally pays for these, but can negotiate with the seller in the final purchase price.

REVIEW ALL DISCLOSURE MATERIALS
Sellers of residential properties and involved agents are required by law to disclose to you any information, which may materially affect the value of your home.

Once you have completed your obligations according to the contract and signed your closing papers with First American, your lender will wire the appropriate funds to us.  We will bring your deed and various loan papers to the Recorder’s Office to be recorded into public record.  Then you are the proud new owner.