Selecting Services: Escrow, Title, Etc
Buying a home does not involve just you, the seller, and your agents. There are all kinds of people and services involved behind the scenes. In California, the seller normally selects some of the service providers, while the buyer selects others.
Escrow Company 
The seller normally picks the escrow company. Once the seller accepts your offer, his or her agent will open officially open escrow with an escrow company. The escrow company coordinates the entire transaction, and is at the service of both the buyer and the seller. Once the escrow is opened, no changes can be made to the purchase contract unless both the buyer and the seller agree. The escrow company makes sure that both parties receive all of the required escrow paperwork, and that these are signed by both parties and returned in a timely manner. Escrow also makes the final disbursement of funds, and will see to it that the title company has the correct instructions on which day the sale is to close. As the buyer, you will need to go to the escrow company to sign your loan documents in the presence of escrow’s notary public. Your realtor or lender will advise you ahead of time of when the loan documents will be ready for you to sign.
Title Company
Title insurance is important because, by providing you with an Owner’s Policy, the title company ensures that you have clear title to the property. In other words, the title company makes sure there is no third party who has a legitimate claim to the property. If there are any problems later, you can go back to the title insurance company and have them clear it up. Since it is customary for the seller to pay for the Owner’s Policy, sellers normally select which title company will be used.
The buyer pays a fee to the title company as well, for the Lender’s Policy. The Lender’s Policy ensures your mortgage lender that there are no liens or judgments against the property and that the mortgage will be in first position. In other words, should you sell the property or refinance it, their mortgage gets paid first, before any other claims against the property. The Lender’s Policy is less expensive than the Owner’s Policy.
Wood-Destroying Pest Inspector 
In California, it is customary for buyers to ask for a wood-destroying pest inspection, aka a termite inspection, to be paid for by the seller. Lenders typically require a termite inspection report before they will fund your loan. The seller normally picks this service provider as well, but you may specify, in your offer, any company that you like. The pest company not only inspects for termite damage and pest infestations, but also for dry rot and water damage, among other things. The company will then issue a report, specifying “Section1” and “Section 2” damages. “Section 1” refers to evident and existing damage, and sellers are normally responsible for completing any required repairs. (This may not be the case for properties sold as fixer-uppers or tear-downs, of course.) “Section 2” refers to any potential damage down the line, and is the buyer’s responsibility.
General Home Inspector
Most buyers exercise their right to a general home inspection before removing all contingencies and proceeding with the purchase. A general inspection is conducted by a private company or contractor hired by the buyer, at the buyer’s expense. A general inspection costs approximately $350 for a 2000 sq ft house. The buyer chooses the inspection company, but does not need to specify in the purchase offer what company they will use. Your real estate agent should know several good inspection companies and will make a recommendation. It is wise to conduct the inspection as soon as possible after escrow has been opened.
You and your agent should both be present during the inspection, so that the inspector can talk you through his findings and give you a clear idea of the condition of the house. General inspections normally investigate major structures such as foundation, roof, electrical and plumbing, and also verify the condition and operation of multiple other items, from the a/c unit to cracks in the ceiling to how easily the windows open. Sometimes, the general inspector may recommend that the buyer hire more specialized inspectors to take a closer look at, say, the chimney, the foundation, the heating unit, etc.
Appraisers
If you are taking out a mortgage to buy a home, the lender will require an appraisal. An appraisal is an evaluation of the market value of the property. The lender simply wants to make sure that the property is worth what you are paying for it. If the appraiser concludes that the property is worth less than what you are paying for it, the lender may refuse to make the loan, depending on how large your down payment is. Since your purchase offer is contingent on an appraisal, you have the right to withdraw your offer should the property not appraise at the agreed upon price. The buyer pays for the appraisal.