Let's talk about "escrow". When you're closing on your new house, an escrow company is used to ensure the transaction will close correctly and in a specific time frame. When money is held by a third party in a transaction between a buyer and a seller, it's in escrow. For example, in an online purchase, PayPal is the reliable third party that holds the buyer's cash, and then disburses the funds to the seller.
Settling the last details like receiving funds, finishing forms, getting the documents for loans and liens, and assuring you get a spotless title to the property in preparation of your purchase gets finalized are all parts of closing in which an escrow company is useful.
These are the legal forms that escrow holders usually look for:
- Requests for payment for various services to be paid out of escrow funds
- Loan documents
- Tax statements
- Fire and other insurance policies
- Title insurance policies
- Terms of sale and any seller-assisted financing
You're ready to close when all steps are finished in escrow process. At this time, all payments and dues for inspections, title insurance and real estate commissions are paid out. Title to the house is then given to you as now current homeowner and related title insurance is issued as noted in the escrow policy.
At the close of escrow, payments of funds are made in an acceptable form to the escrow. As your REALTOR, I'll inform you of the acceptable way of paying.