Completing the Transaction

Escrow
To close the sale of a home, a neutral, third party (the escrow company) is brought into the picture to assure the process will close perfectly and on time. A home is said to be in escrow when in the closing transaction, funds is secured by a third party on behalf of two parties (in this case, a buyer and a seller) when the transaction is taking place. A simple way to think of what an escrow company does is to compare it to PayPal for Internet purchases.

Settling the last details like taking in funds, finishing forms, securing the documents for loans and liens, and assuring you a clean title to the property before your purchase gets finalized are all part of the job of the escrow company.

	Choosing to buy a place for the first time can be intimidating. Let us help you. Contact us and we'll make sure you're a smart buyer.

These are the pieces of paperwork that escrow holders usually compile: 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

Closing on the house happens when the steps of the escrow are done. All payments owed and fees are taken and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). The house's title gets handed over to you and title insurance begins per the policies of your particular escrow agreement.

At the close of escrow, payments are submitted in an acceptable form to the escrow. As your REALTOR, I'll inform you of the acceptable form of payment.

The Escrow Holder Will:		The Escrow Holder Won't:
Prepare escrow guidelines Petition title search Meet the bank's standards as written in the escrow agreement Accept funds from the buyer Prorate interest, insurance, tax and other payments according to guidelines Record deeds and other legal documents as instructed Request title insurance policy Close escrow when all terms of agreement of seller and buyer have been finished Disburse funds and finish instructions		Offer advice - the escrow holder must maintain a neutral, third-party status Dispense opinions about tax implications

Mortgage Escrow Account

Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Usually, the home buyer makes a payment at closing and also makes regular deposits through their monthly mortgage payment to fund the Escrow Account.

This is a easy to understand guide about the escrow process. Your specific plan could be different based on your bank and your escrow company.