Real estate investing can be a rewarding business if you make the right decision in hiring an escrow company. The right escrow officer can mean the difference between a quick and smooth closing or a messy and delayed closing, quite possibly fraught with costly mistakes.
You can’t be too careful when selecting a title escrow company. As a real estate investor, your needs are a little different than the average homebuyer, and the escrow company you choose should be able to meet each and every one of them.
When contacting the title escrow company, it’s prudent to ask for their most experienced escrow officer, especially one who has worked with real estate investors. Ask them if they have worked in any real estate deals that involve creative solutions. Ask for references from previous real estate investors with whom they have worked. Insist that this person be the only one in charge of your work.
Remember that you will be working closely with this person throughout the entire process and they become a personal secretary whose job it is to carry out your instructions.
Here are some questions to ask a potential escrow company or official:
1. How long have you been a custody officer?
2. How long were you an assistant before you became an escrow officer?
3. Do you have an assistant? Are you familiar with the files?
4. Are you comfortable closing “creative” real estate deals?
5. Can “subject to” closings, simultaneous closings, etc. be made?
6. What are your hours of operation? If necessary, can and will you stay late?
7. If necessary, can you meet a client to sign outside of your office?
8. What means and frequency do you use to communicate the status of your files and to whom?
9. What recording times are scheduled for your company?
10. How do you handle escrow collection accounts?
11. Will an all-in deed of trust secure?
12. Do you have a notary available?
13. What are your escrow rates?
14. What are your financing options?
15. What is the method and delivery time of the property profiles?
16. Do you have an after-hours service for title information?
17. What do you expect from me?
These are just a few questions to get you started. Create your own question checklist on the go.
Once you have completed your search process, choose the escrow agent you feel most comfortable working with. Your choice of escrow agent may be one of the most important decisions you make as a real estate investor.