Escrow: To finish the sale of a home, a neutral, third party (the escrow company) is employed to assure the process will close correctly and on time. Escrow companies hold money for "safe-keeping" in an exchange between a buyer and seller. PayPal is a good way to picture an escrow company.
The escrow agent makes sure that the terms and conditions of the agreement between the seller and buyer are completed in preparation of the sale being finished.
Escrow agents collect the following legal 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
- Loan documents
Closing on the home happens when all of the procedures of the escrow are done. All expenses like title insurance, inspections and real estate commissions are paid. The house's title is given to you and title insurance is issued per the steps of your particular escrow agreement.
At the close of escrow, payments are submitted in an acceptable form to the escrow. As your agent, I'll inform you of the acceptable way of paying.