First, a little about "escrow". To complete the sale of a place, a neutral, third party (the escrow holder) is employed to assure the transaction will close correctly and on time. Escrow agents hold money for "safe-keeping" in a deal between a buyer and seller. A simple way to think of what an escrow company does is to compare it to PayPal for Internet purchases.
The escrow company makes sure that all terms and conditions of the seller's and buyer's agreement are reached prior to the sale being finished. This includes getting funds and records, completing required forms, and getting the release documents for any loans or liens that were paid with the transaction, assuring you have a free title to your house before the purchase price is fully paid.
The documents the escrow agent may secure include:
- 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 property happens when all of the procedures of the escrow are complete. All expenses like title insurance, inspections and real estate commissions are paid. You'll then obtain the title to the house and the title insurance gets issued as stated in the escrow instructions.
At the close of escrow, in an acceptable form to the escrow. As your real estate professional, I'll inform you of the acceptable form of payment.