Frequently Asked Questions
- How can I motivate others on the team to provide me with paperwork needed?
- I don't coordinate my own escrows. Why should I take the seminar and read the book "Escrow Coordination Secrets"?
- What is the best computer program I can use for coordinating my escrows?
- How do I select a software program for my escrows?
- So what should you look for in a program?
- What is the book about?
- What are your qualifications to teach and write?
- What will the seminar teach me?
- Who does what during a transaction?
- Explain funding and closing practices.
- How long do I need to save paperwork from a transaction?
- You talk about teams, but I don't have one. Will your systems still work for me?
How can I motivate others on the team to provide me with paperwork needed?
Many of us feel out of control when it comes to receiving paperwork in a timely manner from others. It is important for each brokerage to comply not only with the terms of the purchase agreement contract, but to also comply with DRE (Department of Real Estate) regulations. When a file is audited at the end of an escrow period, we ensure all contracts, disclosures and reports related to the transaction have been fully executed, that is signed off by buyer, seller and their perspective agents, if applicable. This becomes even more of an urgent issue when agents are not paid their commission until the file is complete!
So what can we do to ensure we have a complete file at close and the delivery of paperwork is completed in a timely manner?
The first step is to always request paperwork you need IN WRITING and fax or email it to the other team member. Typically, when a request is put in writing it is more meaningful to the recipient and they are better able to follow through with your requests.
Second, audit your files 8-10 days prior to close. Give the other party plenty of time to respond to your written request for documents.
Third, let other team members know UP FRONT what documents you need for the transaction. Do not wait until the end of the escrow to submit a request that could have been taken care of at the beginning of the escrow period.
Finally, if you are still having a problem with receiving requested documents, you can, fax it to the title company along with instructions for the officer to have the buyer/seller sign it when they visit the title company to sign closing papers. Instructions and copies of what you sent MUST be also sent to the other agent with an explanation.
I don't coordinate my own escrows. Why should I take the seminar and read the book "Escrow Coordination Secrets"?
It is important for you to understand the necessary tools that the rest of your team members need to keep the flow of the escrow moving. Your team becomes frustrated when they are unable to complete tasks in a timely manner while waiting for you to provide information. When you keep your team working at their highest and best level, you have happier team members, with less problems towards the end of the escrow. The book is an excellent resource for you as well as a training manual for current or future staff. "Escrow Coordination Secrets" not only explains step by step the dynamics of escrow coordination, it offers review questions at the end of each chapter to ensure the reader understands the IMPORTANT aspects of the book. Many agents do not have the time nor knowledge base to properly train staff. The book and seminar helps solve this problem!
What is the best computer program I can use for coordinating my escrows?
There are a number of computer programs available in the real estate industry to help us coordinate our transactions.
They can be divided into 3 simple categories:
- A computer software program with a built-in client database.
This type of software enables you to input client information, track listings and sales. This type of software works well for an agent coordinating his or her own escrows or a coordinator who is working for one agent.
- A computer software program that is a "stand alone." That is, it ONLY coordinates escrows. It does not manage listings nor anything else.
The software works best for coordinators who are working with multiple agents. Some of these programs can be networked to other computers.
- An internet based coordinating software.
This software is excellent for team approach coordinating. Download the software template and for a per transaction fee you can use and access it 24/7. The information is stored on the site's server. You and others you assign a password to can access information about the transaction.
Many companies allow users to demo their product before purchasing. You can find many of these companies on the internet under escrow coordination or transaction coordination.
How do I select a software program for my escrows?
Let's start off by telling what you CANNOT expect! Many people get discouraged because the system does not allow users to apply the templates to their style of coordinating as soon as they purchase the product!
This IS NORMAL! You will always have to tweak every software template to fit your needs. I have created a number of scenarios to apply towards different escrow situations. For example a 30 day buyer and 30 day seller escrow, a 30 day LAND seller escrow. A 45 and 60 day seller and buyer escrow, and so on.
So what should you look for in a program?
- The ability to calendar due dates and be reminded automatically when those dates come up.
- The ability to add or remove reminders to your escrow program.
- The ability to type notes about the transaction and email and print out reports for documentation purposes.
What is the book about?
The book is a comprehensive how-to book on escrow coordination. I wrote it to help other real estate professionals develop a standard of practice within our industry. It is my hope that the book will be used to educate and be used as a guide to provide superior client service and team management. I divided the book into easy to read sections with a comprehensive review at the end of each chapter. The questions highlight important concepts of each chapter. I also created an escrow terminology guide to help the newer associates with typical language used. I have included copies of common contracts with an emphasis on locating terms of a purchase agreement contract. Finally, samples of my custom forms to keep you organized and save time are included to help you understand the systems that are explained.
What are your qualifications to teach and write?
Excellent question! I have worked for an independent broker as a coordinator for over 8 years. Many of the systems I teach I use on a daily basis. Many different team members encouraged me to teach after working with me! I participated in a contract committe at the California Association of Realtors several years ago and met Jennifer Dodge who heads up the Education Department. Through her encouragement, I wrote the book! I think I have the ability to take a complex, multi-tasked job description and break it down into easy steps. That's what sets me apart from others.
What will the seminar teach me?
The seminar touches a little on most aspects of coordination with an emphasis on time saving systems and working as a team.
Who does what during a transaction?
A common questions that is asked at almost all of my seminars! The following are guidelines only. Sometimes a team member will be unable to perform his or her duties and it IS the responsibility of the rest of team to ensure tasks are completed in a timely manner to prevent delays in closing.
- Whoever WROTE the contract, disclosure, addenda gets to KEEP the original copy.
- Whoever PAYS for a report and/or inspection is responsible for ORDERING, ACCESS and ensuring any reports generated are delivered to other applicable team members.
EXCEPTION: The appraisal. Although the buyer typically pays for the report, the LISTING agent is responsible for access! It is assumed the listing agent has more knowledge of the area and comparable properties and can better share this information with the appraiser. - Whoever pays for the title and escrow fees is responsible for submitting a copy of the offer to the escrow company when an order is opened.
- The BUYERS agent is responsible for delivering the contracts and escrow information to the LENDER once escrow has been opened.
- Whoever PAYS for title insurance and fees OPENS the escrow and provides the information to other team members.
- The BUYER always submits a RENTBACK agreement after sale to the seller (Think of the Buyer as being a LANDLORD after close).
Explain funding and closing practices.
This can be very confusing to professionals new to real estate!
Funding occurs when a bank who is giving a loan to the buyer, wires the money into the escrow account. Typically, most banks will wire the funds very near the anticipated closing date, usually one business day prior to or on the day of close.
Closing refers to official recording that takes place at the county recorder's office. It's public notice of ownership transfer and any liens on the property. Recording can only take place during the hours the county recorder's office is open and typically occurs when all funds are deposited into the escrow account (Bank funds and the purchaser's down payment).
Find out what the funding and closing practices are for the county the property being sold is located in. Communicate this to the loan officer to prevent funding delays and late closes!
How long do I need to save paperwork from a transaction?
According to CAR, it's 3 years from the date the transaction ends.
You talk about teams, but I don't have one. Will your systems still work for me?
Actually, you DO have a team! Your team will help you to solve problems and close the transaction. In turn you will help and support them too. Your team is the buyer, seller, the buyer and seller agent, escrow officer and lender. When you think of these individuals as your team, you will accomplish much more during the transaction and head off potential disasters! My systems are based upon utilizing and working with a "team" so they will work perfectly for the agent going "solo"!