What is Escrow?
The escrow company is careful to assure that all terms and conditions of the seller's and buyer's contract are completed prior to the sale being completed. This includes getting monies and paperwork, completing required forms, and seeking out the release documents for any loans or liens that were cleared with the transaction, assuring you have a free title to your house before the asking price is fully paid.
Escrow agents collect the following records:
Upon finishing of all portions of the escrow, closing can take place. All payments owed and fees are taken and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). The house's title gets transferred to you and title insurance begins per the steps of your individual escrow process.
When closing is finished, you'll pay the fees to the escrow holder. As your agent, I'll inform you of the acceptable form of payment.
The Escrow Holder Will:
- Assemble escrow guidelines
- Request title search
- Comply with the bank's standards as specified in the escrow agreement
- Intake payments from the buyer
- Prorate insurance, tax, interest and other payments according to guidelines
- Record deeds and other paperwork as instructed
- Obtain title insurance policy
- Close escrow when all instructions of seller and buyer are complete
- Disburse monies and finish instructions
The Escrow Holder Will Not:
- Tell you what's best - the escrow agent stays at an impartial, third-party status
- Dispense opinions about the outcome of your taxes
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The Escrow Holder Will:
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The Escrow Holder Won't:
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Mortgage Escrow Account
Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.
Now you know more about being in escrow. And, you can be a more informed home buyer and future homeowner.