After the seller and buyer sign the Purchase Agreement, the real estate agent collects the earnest money deposit. This is deposited into a secure escrow account at the escrow company both the seller and buyer have agreed to use. The escrow company will hold this earnest money in trust and only disperse it once all contract terms have been met.

The real estate agent will typically deliver the Purchase Agreement to the escrow company. It will then be assigned to an escrow officer, who will give the transaction an escrow number. The broker can provide the escrow agent with additional information about the transaction, including contact information, title information, and any other details that are necessary.

Finally, escrow will close once the buyer and seller sign final paperwork. After this paperwork is signed, the escrow company prepares a new deed to be sent to the county recorder’s office. A wire transfer or cashier’s check is provided for the down payment and closing costs and the lender wires loan funds to escrow. All other documents and funds will change hands at this time.