Escrow Officer Job Description, Skills, and Salary
Get to know about the duties, responsibilities, qualifications, and skills requirements of an Escrow Officer. Feel free to use our Escrow Officer job description template to produce your own. We also provide you with information about the salary you can earn as an Escrow Officer.
Who is an Escrow Officer?
An escrow officer is a neutral third party who manages funds that are passed between a seller, buyer, or lender. The account that is managed by an escrow officer is referred to as an Escrow Account. Escrow accounts work as a good-faith negotiation tool and also a security instrument. They represent the payer’s genuine commitment to a contract by securing funds for the receiving party. Escrow officers may also be loan officers who establish accounts to hold the funds needed to pay mortgages as well as property taxes, insurance, and mortgage payments. Escrow officers can also supervise the other aspects of a deal including the signature of documents and the use of title insurance in dealing with real estate, as well as other steps required to close an agreement. In terms of escrow, an officer ensures that everything associated with a transaction is conducted legally and in a fair manner.
The usage of an escrow officer is mostly connected to property transactions. In the case of property transactions, an escrow officer can be employed while an agreement is being negotiated between the buyer and seller. The buyer pays a specific quantity of funds to an agent who deposits it into a neutral account till the deal is completed which means that all money is transferred to the buyer. Escrow officers also manage earnest money deposits, which differ from a down payment for mortgages. These are transferred into an escrow bank account to demonstrate to the seller that a prospective buyer is committed to acquiring an investment property.
Escrow accounts for real estate aren’t only for potential buyers and sellers. These accounts are used to facilitate any transaction that takes place with two or more parties. A lender instead of distributing an amount in one lump sum to a borrower can release a portion of the loan over time through an account in an escrow. If a tenant makes an amount of security to rent a property, a landlord typically holds the money within an account for escrow to ensure that the money of the tenant is kept in a secure and neutral location. In the case of a property owner who has a mortgage, the escrow account can be created by the mortgage lending company in the role of an escrow officer specifically to hold funds to pay off mortgage-related payments tax, insurance, and property taxes.
An escrow representative in one instance may assist with the transfer of purchasing funds, while another escrow representative can manage the entirety of a deal from start to end. Escrow officers can also manage more complex transactions, including liens where the other party is responsible for paying off the other party’s debt in exchange for interest-bearing payments.
Another important function of the escrow officer is to keep the documents in place until the terms of the agreement are being negotiated, and the agent could also keep items after a deal has been concluded, following the contract terms. For instance, an escrow officer may hold cash deposits, titles to properties, and other kinds of documents. In addition, escrow accounts could be set up to pay for maintenance charges on properties. An escrow account may also hold money for the buyer, and then release the money to the buyer after an agreement is executed.
The escrow officer is not involved in the negotiation of the contract. This is done by lawyers as well as other agents for both parties. Officers serve both buyers and sellers by ensuring that the transaction is carried out according to plan and purpose and ensuring that the requirements of both parties are met. Escrow officers usually collaborate directly with agents of each of the parties. It is up to the individual to choose the escrow agency they want to collaborate with, based on the type of contract they have reached. In certain areas, the same company is likely to manage the majority of escrow requirements and it is not possible to have any selection for those making business agreements. In other areas, the buyer and seller might require negotiations to decide on the escrow company to be employed, typically following the advice of their representatives.
The requirements to become an escrow officer differ. Since escrow brokers are relied on to handle sensitive and important material. They should be reliable and free of conflicts of interest. Employees in the escrow industry typically need to prove they are reliable and demonstrate that they adhere to the ethical code of conduct. The company itself must fulfill legal requirements to prove that they are ethical and responsible when dealing with its clients.
Trustees and escrow officers are alike as they both are third-party entities legally accountable for the protection and distribution of assets of a different party. The primary difference between a trustee and an escrow officer lies in the way and when each one is utilized. Escrow transactions are reserved only for contracts between two beneficiaries like homeowners and buyers. Trusts are, however, are created by individuals (grantors) to fulfill the purpose of helping the beneficiaries.
Escrow Officer Job Description
Below are the Escrow Officer job description examples you can use to develop your resume or write an Escrow Officer job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.
The duties and responsibilities of an Escrow Officer include the following:
- Following the directions that both the seller and the buyer have reached an agreement on for the escrow fund.
- Checking to see that the escrow account received all of the funds it requires as well as any invoices that might be due to the seller and the buyer for the escrow account.
- Obtaining the proof of insurance form from the insurance company of the buyer and then supplying that document to the loan provider.
- Making sure that all relevant paperwork is in the escrow.
- Sending all loan documents, including the completed loan and other necessary documents, with signatures to the new lender on behalf of the prospective buyer.
- Preparing the timeline for the closing of the real estate.
- Researching to verify that the title is clear.
- Examining the purchase contract as well as any escrow directions to ensure that the information is accurate.
- Making sure that everyone has fulfilled the obligations they have agreed to regarding the escrow as well as the purchase of the property.
- Assisting with the preparation of the closing documents.
- Making additional documents following what the lender of the buyer requires in documents for loans.
- Submitting the documents and releases as required to the title company, so that they can confirm and issue an official record of the transactions.
- Ensuring you have sufficient cash in the home to fulfill their portion of the deal typically, which includes the repayment of their loan, bills, and any other expenses that they have agreed to together with their buyer.
- Performing escrow closing once all parties have fulfilled their requirements.
- Assisting in the transfer of property from the name of the seller to the name of the buyer.
- Writing clear instructions for escrows so clients are aware of the steps to follow to pay their escrow
- Examining the validity and insurance for the title of the real property
- Giving settlement estimates and updates for real estate professionals as well as clients
- Ensuring that all documents for sales and escrow comply with the requirements of your lender
- Inquiring about clients’ signatures on the escrow documents
- Preparing for closings and scheduling
- Approving the distribution of funds escrow during the closing
- Informing all parties of an Escrow balance statement
Other crucial tasks are:
- Monitoring the escrow account
When a real estate deal is completed, the escrow officer is accountable for ensuring that the funds deposited from the buyers are correct and up-to-date.
The two parties are held to their commitments. The escrow officer ensures that the obligations of the parties, such as appraisals and inspections of homes as well as securing financing are clearly defined and fulfilled within the agreed-upon time.
- Disbursement of funds from escrow
When closing a real estate transaction after all the requirements of the contract are completed, the officer distributes cash to the vendor and then delivers an escrow deed for the purchaser. This is known as the “close of the escrow” and signifies that the transaction has been completed.
Qualifications
- Diploma from high school or GED.
- State escrow certification.
- Work experience in the field working as an Escrow Officer.
- Excellent decision-making skills.
- Expertise in advanced clerical skills.
- Ability to understand and interpret blueprints as well as property maps.
- Understanding of the legal code of courts, procedures for court, as well as an executive order.
Essential Skills
- Develop analytical thinking.
- Have basic math skills.
- Effectively communicate.
- Keep your schedule in order.
- You must be able to manage multiple tasks at the same time.
- Focus on customer service.
- Know everything you can about titles.
- Ability to make informed decisions.
- Be aware of computers and specific software and tools.
- Know about real estate processes.
- Know how to read and comprehend documents related to real estate, such as appraisals, surveys, and blueprints.
- Excellent clerical skills.
How to Become an Escrow Officer
- Achieve an associate degree from a high school
An official high school diploma or equivalent degree is considered the standard education required by most companies that recruit escrow officers. It is important to demonstrate that you’ve completed high school is essential in light of the minimal qualifications for the job, however, the high school experience introduces you to the foundational skills which can aid you in achieving the success you desire in your career.
- Get a college degree
Employers do not always need applicants to have a bachelor’s or associate’s level of education, but some do require it, in any case, the education can aid in standing out from other applicants seeking the same job as an escrow officer. Take a look at job postings for escrow officers to see whether there’s a pattern in the requirements that employers typically require or would prefer to see in candidates. Employers may have an associate’s or bachelor’s degree as the preferred qualifications.
- Build your skillset
You can highlight your skills set in your resume, and in your cover letter, when applying for jobs. Look into ways to build your skills to be appealing to an employer and convince them why you’re a great candidate for the vacant position.
- Gain relevant experience
After graduating, you may want to apply for entry-level positions within the field. You could even be an assistant to receptionists or file clerks at an independent escrow business that can connect you with professionals in the field. It could be a company that you could develop with.
- Get a state-issued license
To work as an escrow officer in some states, you need an appropriate state-issued license. Licensure may be contingent on specific escrow-related training and relevant work experience, therefore, it is advisable to consult your state’s requirements so that you are aware of the things you must accomplish to be successful in your profession and to be eligible for employment in the job you’re looking for.
- Get insurance
To become an escrow officer, you may have to secure a surety bond which is a type of insurance that offers customers the option of getting the funds they have deposited into escrow if there’s a contract breach or if someone fails to meet their obligations. A lot of employers who employ escrow officers need this insurance to assure their customers that the transaction will be as smooth as it can.
- Becoming an official notary public
Although you don’t have to be a notable escrow officer, some hiring managers do prefer you to. The ability in notarizing documents is important particularly when it comes to an estate transaction.
Where to Work as an Escrow Officer
Escrow officers are employed by title companies, real estate businesses, real estate lawyers as well as lending companies. They generally work during regular business hours, however, they may have to work later to finish the closing process of a real estate deal.
Escrow Officer Salary Scale
The median pay for escrow officers across the United States is $60,011 per year. However, your geographic area can play a role in the amount you earn.