1. Assuming that the Escrow Agent knows everything about the transaction:
The Escrow Agent is only as knowledgeable as the Principals will allow. Unfortunately, parties often fail to disclose important facts.

2. The Escrow Agent can complete and correct a Real Estate Sales Contract when the escrow instructions are prepared:
An escrow Agent is not allowed to practice law in the State of California. Preparing correcting, or interpreting a contract for its legality is a job for an attorney and best done before signing.

3. The Escrow Agent will represent and protect the interests of the principals:
The Escrow Agent can only refer to the sales contract (which is the document from which the escrow instructions are directly prepared) and follow those instructions to the letter.

4. Not signing or completing documents as they are sent and/or required:
The receipt by the Escrow of most of the documents signals the next step of many of the Escrow processes. When documents or forms are sent to the principals, they should be signed and returned immediately. IF they are not correct or if there are any questions, the sending party should be contacted immediately.

5. Failure to read a document before signing, assumes that mistakes are never made:
Basically, the principals know more about the transaction than anyone and have a right to question any document before signing, It is always an uncomfortable moment when a signature is produced on a document that has not been read or understood.

6. The Escrow Agent can effect the performance of the Principals, Agents, or sub-Agent of the Principals:
Agents and Sub-Agents are the employees of the principals. The only persons able to expedite their performance are those who have hired them. This also applies to the insurance agent, lender, title insurer, etc. We often wish we could help but, unfortunately, their actions are not within our control.

7. The Notary Public doesn’t have to actually see the individuals whose signatures are being notarized:
California law mandates that each and every time a signature is to be notarized; the individual must personally appear before the Notary Public with proper identification. The law also requires that a fingerprint be recorded at the same time. It does not allow for either signatures or fingerprints to be kept on file for future use.

8. An appointment is not necessary to see an escrow officer:
True. However, the specific officer handling your file may not be able to see you immediately, if at all. If you do “drop in”, you may have to wait and although someone will always be available to help you, it just may not be the person you wanted to see.

9. Perennial Escrow is owned by a real estate broker, a financial institution or a title company:
Perennial Escrow, Inc. is a privately held corporation with no outside affiliation to any broker, bank, or title insurer. As an independent escrow company, we are licensed and regulated by the State of California Department of Corporations and subject to ongoing inspections and audits.

10. Sometimes the specific duties and responsibilities of each party involved in the escrow get confused:



There are three major players in the escrow process.

First there are the Buyers or Sellers: THE PRINCIPALS who enter into a contract to perform certain acts either by themselves or by their sub-agents (brokers) to facilitate the sale or purchase of real estate.
Then there’s the Real Estate Brokers: THE AGENTS OF THE PRINCIPALS. The Principals “employ” Real Estate Brokers to negotiate terms of the contract and/ by custom, continue to facilitate the flow of dialogue and negotiation between the Principals when necessary.

In addition, there’s the Escrow Agent: THE NEUTRAL STAKEHOLDER who acts on the written instructions of the Principals and coordinates the efforts of the Agents and Sub-Agents.
On occasion there is also a fourth player.. THE ADJUDICATOR. Sometimes it may be necessary for the Judicial process (a lawsuit) to be used by one of the Principals to enforce their rights under the contract to compel other Principals to perform their obligations.
PRINCIPALS PERFORM..they buy or sell and enlist sub-agents to act on their behalf. REAL ESTATE BROKERS NEGOTIATE… and supply the escrow company with the contract resulting from that negotiation.
ESCROW OFFICERS COORDINATE…all the steps between the signing of the sales contract and the actual transfer of title.