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Closing the Sale in Needham, Massachusetts

 Louis Wolfson & Co. can walk you through closing - (617) 799-3326
Let's talk about "escrow". To finalize the sale of a place, a neutral, third party (the escrow company) is employed to assure the transaction will close appropriately and on time. Escrow holders hold money for "safe-keeping" in transactions between a buyer and seller. An easy way to understand what an escrow company does is to compare it to PayPal for online purchases.

Tying up any loose ends like obtaining funds, completing forms, securing the documents for loans and liens, and assuring you get a clean title to the home before your purchase gets finalized are all part of the job of the escrow company.

These are the legal forms that escrow holders usually compile:

  • Loan documents
  • Tax statements
  • Fire and other insurance policies
  • Title insurance policies
  • Terms of sale and any seller-assisted financing
  • Requests for payment for various services to be paid out of escrow funds

You're ready to close when all parts are done in escrow process. At this time, all payments and fees for inspections, title insurance and real estate commissions are collected. The house's title is given to you and title insurance begins per the steps of your individual escrow process.

The escrow agent receives a payment at the completion of closing. You'll know when it's time to submit the form of payment.

The Escrow Holder Will:

  • Prepare escrow instructions
  • Request title research
  • Comply with lender's guidelines as specified in the escrow agreement
  • Accept payments from the buyer
  • Prorate insurance, tax, interest and other payments according to instructions
  • Record deeds and other legal documents as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer have been finished
  • Disburse payments and finalize instructions

The Escrow Holder Will Not:

  • Offer advice - the escrow company stays a neutral, third-party status
  • Give insight about future tax estimations
The Escrow Holder Will:
The Escrow Holder Won't:
  • Prepare escrow guidelines
  • Petition title search
  • Meet lender's guidelines as specified in the escrow agreement
  • Intake payments from the buyer
  • Prorate interest, insurance, tax and other payments according to guidelines
  • Record deeds and other paperwork as instructed
  • Request title insurance policy
  • Close escrow when all instructions of seller and buyer have been met
  • Disburse monies and finalize instructions
  • Tell you what's best - the escrow company must stay at a fair, third-party status
  • Dispense opinions about future tax estimations

Mortgage Escrow Account

Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Escrow Accounts are contributed to monthly by the home buyer (who is now the homeowner), but there is also a lump sum that goes into the account at closing.

Now you know more about being in escrow. And, you can be a better informed home buyer and future homeowner.

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Louis Wolfson & Co.

29 Cimino Road
Needham, MA 02494