Let's talk about "escrow". To finish the sale of a property, a neutral, third party (the escrow holder) is engaged to assure the process will close properly and on time. A property is said to be in escrow when in the closing process, payment is held by a third party on behalf of two parties (in this case, a buyer and a seller) when the exchange of money takes place. A simple way to think of what an escrow company does is to think of how you might use PayPal for online purchases.
The escrow agent makes sure that all terms and conditions of the seller's and buyer's agreement are performed prior to the sale being finalized. This includes securing monies and certificates, signing required forms, and getting the release documents for any loans or liens that are to be cleared with the transaction, assuring you have a free title to your home before the purchase price is fully paid.
Escrow holders look for the following documents:
- 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
- Loan documents
- Tax statements
You're ready to close when all parts are done in escrow process. All expenses like title insurance, inspections and real estate commissions are paid. You'll then receive the title to the property and the title insurance gets dispersed as noted in the escrow instructions.
At the close of escrow, payment of funds shall be made in an acceptable form to the escrow. As your real estate professional, I'll let you know what is an acceptable way of paying.