Completing the Transaction

Escrow
When you're closing on your new property, a neutral, third party (known as the escrow holder or the escrow agent) is used to make sure the process will close without problems and in a timely manner. When payment is held by a third party in a transaction between a buyer and a seller, it's in escrow. For example, in an Internet transaction, PayPal is the neutral third party that holds the buyer's funds, and then hands over the money to the seller.

Clearing the final hurdles like receiving funds, completing forms, getting the documents for loans and liens, and assuring you a clean title to the property in preparation of your purchase gets finalized are all parts of closing in which an escrow holder is useful.

	Whether it's your first house or your next home, we'll help you through the process. Contact us and we'll help you become a empowered buyer.

These are the records that escrow companies usually look to collect: 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

Upon finishing of all portions of the escrow, closing can take place. At this time, all payments and dues for inspections, title insurance and real estate commissions are paid out. Title to the home is then transferred to you as new owner and related title insurance is issued as noted in the escrow instructions.

When closing is in it's last step, you'll pay the fees to the escrow agent. As your real estate agent, I'll let you know what is an acceptable way of paying.

The Escrow Holder Will:		The Escrow Holder Won't:
Assemble escrow guidelines Petition title search Comply with the bank's requirements as written in the escrow agreement Accept funds from the buyer Prorate tax, interest, insurance and other fees according to guidelines Record deeds and other legal documents as instructed Obtain title insurance policy Close escrow when all terms of agreement of seller and buyer are met Disburse monies and finish instructions		Offer advice - the escrow agent has to remain an impartial, third-party status Offer opinions about the outcome of your taxes

Mortgage Escrow Account

Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Escrow Accounts are contributed to monthly by the home buyer (who is now the homeowner), but there is also a lump sum that goes into the account at closing.

Once you have the basics of the escrow process down, you can be a more assured buyer.