Buyer and Contractor Agree in principal
Buyer and Contractor determine work stages, money to be provided at each stage, criteria to determine if work is completed properly, and dispute resolution method.
Buyer and Contractor sign documents
Both parties sign a copy of the escrow instructions and return them to Escrow.
Buyer Approves Stage
Buyer reviews the work performed per the agreement and acknowledges that work is complete to Escrow.
Buyer Rejects Stage
Buyer notifies Contractor and Escrow of deficiencies in the work performed. The contractor either agrees and corrects the problem, or disagrees and the agreed upon dispute resolution process is begun.
Buyer sends clear funds
Receive clear funds from the buyer sufficient to meet the payout for the current stage of work. Clear funds requires wire transfer, or confirmation of the sending or receiving bank that funds have cleared.
Close Escrow
Escrow is completed. Disburse remaining funds per escrow instructions.
Contractor Completes Stage
Contractor performs the specified work and notifies Escrow and the Buyer of completion.
Contractor receives payment
Funds are released to the Contractor as a check. (unless prior arrangements have been made).
Maintain Communication
Notify the Buyer and Contractor each time a stage is completed, or the next stage has been funded.
More Stages
More stages remain. Send money for next stage to Escrow.
More Stages?
Continue through the process if more work stages remain.
No More Stages
Last stage is complete and accepted. Release the final payment to the contractor per the escrow instructions and send out final documents.
Notify Contractor to begin Work
Phone and Email or mail the Contractor to begin the next stage of work.
Notify Escrow Work is Accepted
Buyer phones, emails or mails the Contractor and Escrow to notify them that the current stage is accepted.
Notify Escrow Work is Complete
Contractor phones, emails or mails the Buyer and Escrow to notify them that the current stage of work is complete.
Notify Seller to Send Funds
Phone and Email or mail the Seller to send funds for the next stage.
Open Escrow
Capture detailed information as to the requirements of the parties involved.
Pay Contractor for completed stages
Upon acceptance by the buyer, funds are released to the Contractor as a check. (unless prior arrangements have been made).
Prepare Escrow Instructions
Clearly detail the terms of the escrow. Including terms of conflict resolution.
Provide Initial deposit
An initial deposit to cover escrow expenses, and depending on the agreement between the contractor and buyer, money to pay for the first stage.
Receive Signed Escrow Instructions
Both parties sign a copy of the escrow instructions and return them to Escrow.
Receive Stage Funds
Receive clear funds from the buyer sufficient to meet the payout for the current stage of work. Clear funds requires wire transfer, or confirmation of the sending or receiving bank that funds have cleared.
Send Escrow Instructions
Email, mail, and or fax the escrow instructions to both parties.
Send Signed Escrow Instructions
Mail, and fax or email a signed copy of the escrow instructions to Escrow.