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Steps to Closing on a Property

 Louis Wolfson & Co. can walk you through closing - (617) 799-3326
Escrow: To close the sale of a place, a neutral, third party (the escrow company) is engaged to assure the process will close properly and on time. Escrow companies hold money for "safe-keeping" in a deal between a buyer and seller. For example, in a Web auction, PayPal is the secure third party that holds the buyer's payment, and then disburses the money to the seller.

The escrow agent is careful to assure that all terms and conditions of the seller's and buyer's negotiated agreement are reached prior to the sale being finished. This includes receiving funds and documents, filling out required forms, and getting the release documents for any loans or liens that are to be paid with the transaction, assuring you have a free title to your place before the purchase price is fully paid.

Escrow agents look for the following records:

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

Upon completion of all instructions of the escrow, closing can take place. All expenses like title insurance, inspections and real estate commissions are paid. Title to the house is then given to you as new homeowner and correct title insurance is issued as outlined in the escrow policy.

The escrow holder receives a payment when the closing is complete. You'll know when it's time to submit the form of payment.

The Escrow Holder Will:

  • Write escrow instructions
  • Request title inquiry
  • Comply with the bank's standards as written in the escrow agreement
  • Receive payments from the buyer
  • Prorate insurance, tax, interest and other payments according to instructions
  • Record deeds and other paperwork as instructed
  • Request title insurance policy
  • Close escrow when all terms of agreement of seller and buyer are met
  • Disburse payments and finalize instructions

The Escrow Holder Won't:

  • Offer advice - the escrow company must maintain a neutral, third-party status
  • Offer opinions about the outcome of your taxes
The Escrow Holder Will:
The Escrow Holder Won't:
  • Assemble escrow instructions
  • Petition title research
  • Meet the bank's requirements as written in the escrow agreement
  • Intake funds from the buyer
  • Prorate interest, insurance, tax and other payments according to guidelines
  • Record deeds and other legal documents as instructed
  • Request title insurance policy
  • Close escrow when all terms of agreement of seller and buyer have been met
  • Disburse funds and finalize instructions
  • Offer advice - the escrow agent stays at an impartial, 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.

This is a quick run-down of the escrow process. Your specific plan could be unique depending on your bank and your escrow holder.

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Louis Wolfson & Co.

29 Cimino Road
Needham, MA 02494