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.