Let's talk about "escrow". An escrow agent is hired to assure your place closes on time and the process goes smoothly. When funds are held by a third party in a transaction between a buyer and a seller, it's in escrow. An everyday way to understand what an escrow company does is to compare it to PayPal for online purchases.
The escrow holder is careful to assure that all terms and conditions of the seller's and buyer's contract are completed prior to the sale being completed. This includes receiving monies and documents, finishing required forms, and obtaining the release documents for any loans or liens that were paid with the transaction, assuring you have a clean title to your home before the final price is fully paid.
The records the escrow agent may secure include:
- 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
- Terms of sale and any seller-assisted financing
You're ready to close when each step of the done in escrow process. At this time, all payments and fees for inspections, title insurance and real estate commissions are taken. Title to the home is then transferred to you as buyer and related title insurance is issued as outlined in the escrow instructions.
At the close of escrow, payments are submitted in an acceptable form to the escrow. I'll keep you up-to-date on what comes next.