Escrow 101: The Seller's Roadmap
Understanding the repair timeline and when to expect your full proceeds.
Escrow is the neutral third party that handles the money and the transfer of stock. In Leisure World, Escrow plays a critical role in managing the Repair Deposit (RD), which acts as a security deposit to ensure your unit meets Mutual standards before the buyer takes over.
The Critical Timeline
1. The First 10 Days: Financial Approval
The first 10 days of escrow are generally a waiting period. The buyer must submit their financial package to the GRF Stock Transfer Office. We are waiting for the Mutual to verify the buyer meets the eligibility requirements.
2. The New Buyer Orientation (NBO)
A few weeks later, the New Buyer Orientation is scheduled. This meeting is required at least 12 business days prior to the close of escrow. This specific meeting kicks off the final repair window.
3. The Final 2 Weeks: Repair Handover
Any items called out in the Pre-Listing Inspection (PLI) and not repaired by the seller will be repaired in the final two weeks between NBO and closing. They will subtract the cost of repair directly from your Repair Deposit.
4. Close of Escrow
On closing day, ownership transfers to the buyer. Seller costs for any uncompleted repairs are compiled and sent to the GRF Finance Department to be deducted from your Repair Deposit.
If the owner has passed away, an Escape Tax will be held back from the proceeds at closing.
This amount is held until property taxes are confirmed paid post-settlement. Like the Repair Deposit, the Escape Tax will take a few weeks to be returned to the estate.
Many sellers expect their full check on the day Escrow closes. However, the Repair Deposit ( and often the Escape Tax)is held back to ensure all final Mutual invoices are paid.
The remaining balance is refunded to the seller generally within 45 to 60 days after the close of escrow.