Let's talk about "escrow". When you're closing on your new property, an escrow holder is used to make sure the transaction will close properly and in a certain amount of time. Escrow companies hold money for "safe-keeping" in an exchange between a buyer and seller. For example, in an Internet transaction, PayPal is the secure third party that holds the buyer's cash, and then disburses the payment to the seller.
Settling the last details like receiving funds, signing forms, obtaining the documents for loans and liens, and making sure you get a clear title to the home prior to your purchase gets finalized are all part of the job of the escrow company.
These are the legal forms that escrow companies usually look for:
- 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 takes place when the steps of the escrow are done. At this time, all payments and fees for inspections, title insurance and real estate commissions are taken. Title to the property is then given to you as now current homeowner and correct title insurance is issued as outlined in the escrow policy.
At the close of escrow, payments of funds are made in an acceptable form to the escrow. I'll keep you informed on the procedure.