23 Feb Escrow Process: What is a Statement of Information?
There is no shortage of paperwork during the escrow process, and we understand this can be a bit overwhelming, especially for first time home buyers or sellers.
To help, we wanted to share with you some information about the Statement of Information – what it is, how it works and why it’s important. So, let’s get started…
What is the Statement of Information?
Once escrow is opened, home buyers and sellers will receive their initial escrow package. One of the forms included in this package is the Statement of Information (also referred to as the Statement of Identity).
The Statement of Information is a one-page document that asks for name, date of birth, social security number and current and previous addresses for both the buyer/borrower and seller.
Ultimately, this document assists the Title Company is ensuring that the person seeking Title Insurance is you, and not somebody with the same name.
Who Requires a Statement of Information?
The Title Company of record will require this form is completed to confirm your identity. This requirement ultimately assists in eliminating closing delays in a real estate transaction.
How Does the Statement of Information Work?
The Statement of Identity will establish and confirm your identity. By confirming your identity, the Title Company can resolve matters such as judgments, bankruptcies, child support liens or other matters on the public records filed against a person with a similar or same name.
Why Buyers and Sellers Need to Complete the Statement of Information?
Here is a quick example of why it’s so important to complete the Statement of Information:
Your name is Robert Smith. Your Title Company runs a name check on Robert Smith, and it’s not a surprise that they find a number of recorded judgments filed against Robert Smith.
The only way for the Title Company to know that the Robert Smith who owes thousands of dollars is or is not you is by comparing other information – social security numbers, birthplace, marriage history, previous address, etc.
So, to summarize the Statement of Information:
- Title Company requires that buyers/borrowers and sellers fill out the Statement of Information to be able to complete their fiduciary duty to return a clear title for the real estate transaction.
- Every real estate transaction is unique, so if you have questions, talk with your Escrow Officer. He or she will be able to help!
- If you’re aren’t comfortable with the questions you’re being asked to answer, talk with your Escrow Officer. He or she can explain the Privacy Act Notice with which all Pango brands are in compliance.
Of course, if you have any questions about the Statement of Information or any other part of the escrow process, please don’t hesitate to contact us. We are here to help in any way we possibly can!