First, a little about "escrow". To complete the sale of a home, a neutral, third party (the escrow holder) is employed to assure the process will close correctly and on time. Escrow agents hold money for "safe-keeping" in transactions between a buyer and seller. For example, in an Internet auction, PayPal is the neutral third party that holds the buyer's funds, and then hands over the funds to the seller.
Tying up any loose ends like taking in funds, finishing forms, securing the documents for loans and liens, and assuring you get a clear title to the property before your purchase gets finalized are all part of the job of the escrow holder.
These are the records that escrow companies usually compile:
- 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
You're ready to close when all steps are complete in escrow process. All expenses like title insurance, inspections and real estate commissions are paid. You'll then receive the title to the home and the title insurance gets issued as outlined in the escrow instructions.
At the close of escrow, fees are paid in an acceptable form to the escrow. As your agent, I'll let you know what is an acceptable form of payment.