First, a little about "escrow". To finish the sale of a property, a neutral, third party (the escrow agent) is engaged to assure the transaction will close perfectly and on time. Escrow holders hold money for "safe-keeping" in a deal between a buyer and seller. PayPal is a simple way to think of an escrow company.
Clearing the final hurdles like obtaining funds, signing forms, securing the documents for loans and liens, and making sure you get a spotless title to the property prior to your purchase gets finalized are all part of the job of the escrow agent.
Escrow holders want to acquire the following records:
- 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 instructions of the escrow, closing can take place. All debts and fees are taken and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). You'll then receive the title to the property and the title insurance gets dispersed as stated in the escrow instructions.
At the close of escrow, payments of funds are made in an acceptable form to the escrow. As your agent, I'll let you know what is an acceptable form of payment.