Purchasing a house for the first time can be overwhelming. I can help. E-mail me at carlisamsmith@gmail.com .

What To Expect When You're Closing in West Palm Beach, Florida

 J. Briann Realty Group, Inc. can walk you through closing - 561-688-1316
Let's talk about "escrow". When you're closing on your new home, an escrow agent is used to make sure the transaction will close properly and on time. A place is said to be in escrow when in the closing transaction, money is secured by a third party on behalf of a buyer and a seller when the exchange of money takes place. For example, in an Internet transaction, PayPal is the secure third party that holds the buyer's funds, and then hands over the funds to the seller.

The escrow holder is careful to assure that all terms and conditions of the seller's and buyer's agreement are reached prior to the sale being completed. This includes securing funds and documents, finishing required forms, and obtaining the release documents for any loans or liens that were paid off with the transaction, assuring you have a clear title to your place before the purchase price is fully paid.

Escrow holders want to obtain the following legal documents:

  • 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
  • Fire and other insurance policies

You're ready to close when every step is complete in escrow process. At this time, all payments and dues for inspections, title insurance and real estate commissions are taken. You'll then receive the title to the property and the title insurance gets issued as stated in the escrow instructions.

At the close of escrow, fees are paid in an acceptable form to the escrow. As your agent, I'll let you know what is an acceptable way of paying.

The Escrow Holder Will:

  • Prepare escrow instructions
  • Perform a title search
  • Meet lender's requirements as noted in the escrow agreement
  • Receive 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 met
  • Disburse funds and finalize instructions

The Escrow Holder Won't:

  • Give advice - the escrow holder stays a neutral, third-party status
  • Offer opinions about tax implications
The Escrow Holder Will:
The Escrow Holder Won't:
  • Assemble escrow guidelines
  • Perform a title search
  • Meet the bank's guidelines as outlined in the escrow agreement
  • Intake payments from the buyer
  • Prorate insurance, tax, interest and other payments according to guidelines
  • Record deeds and other legal documents as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer have been finished
  • Disburse monies and finalize instructions
  • Tell you what's best - the escrow agent has to remain an impartial, third-party status
  • Give insight about future tax estimations

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.

Now you know more about being in escrow. And, you can be a smarter home buyer and future homeowner.

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