Let's talk about "escrow". To finalize the sale of a property, a neutral, third party (the escrow agent) is employed to assure the process will close perfectly and on time. When funds are held by a third party in a transaction between a buyer and a seller, it's in escrow. A simple way to understand what an escrow company does is to compare it to PayPal for online purchases.
The escrow holder makes sure that all terms and conditions of the seller's and buyer's agreement are met prior to the sale being completed. This includes securing funds and records, filling out required forms, and getting the release documents for any loans or liens that were paid with the transaction, assuring you have a clean title to your place before the asking price is fully paid.
These are the legal documents that escrow companies usually look for:
- 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 finished in escrow process. At this time, all payments and fees for inspections, title insurance and real estate commissions are paid out. The house's title is given to you and title insurance begins per the policies of your individual escrow agreement.
When closing is in it's last step, you'll make a payment to the escrow company. we'll keep you informed on the procedure.