San Dieguito Escrow Home » Escrow FAQs
What are the types of funds that are acceptable for closing?
Acceptable closing funds are a cashier¹s check or a wire that should be deposited at least 24 hours prior the recording date.   Personal checks are not acceptable for closing as they are subject to clearance that could take several days.
Do I Need Title Insurance?
Title insurance is usually obtained when real property is purchased. The policy of title insurance insures the owner and/or the lender of ownership of the property. There are various coverages afforded, but a basic policy insures that the buyer is the owner and that any lender shown on the policy is an "insured" lender. Many different types of extended coverage are available; for example, an ALTA policy is quite often required by the institutional lenders to afford them additional protection under the title insurance policy. The title policy is written after an extensive examination of the public records is made and the recording of the required documents as called for in the escrow.

The title insurance policy fee is a one-time fee, paid at the close of escrow. The determination of who pays for the policy is not uniform from county to county in California. In some counties, the buyer will pay while in others the seller will pay. In other counties the seller will pay for the owner's policy and the buyer will pay for the lender's title policy. But in almost every case, the question of who pays closing costs is a matter of agreement between the parties. Usually this agreement is based on the customary practice in your county or area. In the case of some FHA or VA transactions, the escrow officer must follow the guidelines as required by the lender and/or government.
What is the refundable pad on my closing statement?
A refundable pad is used as a buffer to offset any charges that may have changed after the file had been prefigured.  The file is prefigured using the most current figures available at the time of preparation.  Should the closing date change or any other fees be revised, it is important that the escrow holder has sufficient funds to close out the transaction without having to delay closing due to trying to obtain additional funds prior to the close.  Any unused money is always refunded to the buyer/borrower at the close of escrow with the final closing statement and hud-1 settlement statement.