Let's talk about "escrow". When you're closing on your new property, an escrow agent is used to make sure the transaction will close properly and on time. Escrow companies hold money for "safe-keeping" in transactions between a buyer and seller. For example, in an Internet transaction, PayPal is the secure third party that obtains the buyer's funds, and then disburses the payment to the seller.
The escrow agent is careful to assure that all terms and conditions of the seller's and buyer's agreement are met prior to the sale being finished. This includes securing payments and certificates, finishing required forms, and seeking out the release documents for any loans or liens that are to be paid with the transaction, assuring you have a clear title to your place before the asking price is fully paid.
These are the legal forms that escrow agents usually look for:
- 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 all parts are finished in escrow process. All debts and fees are taken and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions). The home's title is given to you and title insurance begins per the steps of your particular escrow process.
At the close of escrow, fees are paid in an acceptable form to the escrow. As your agent, I'll inform you of the acceptable form of payment.