The escrow holder makes sure that all terms and conditions of the seller's and buyer's agreement are reached prior to the sale being finalized. This includes securing payments and certificates, completing required forms, and getting the release documents for any loans or liens that have been cleared with the transaction, assuring you have a clean title to your property before the final price is fully paid.
The pieces of paperwork the escrow holder may secure include:
Upon finishing of all instructions of the escrow, closing can take place. At this time, all payments and fees for inspections, title insurance and real estate commissions are taken. You'll then obtain the title to the house and the title insurance gets issued as noted in the escrow instructions.
When closing is done, you'll make a payment to the escrow agent. As your agent, I'll inform you of the acceptable form of payment.
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.
This is a quick run-down of the escrow process. Your individual plan will be slightly different based on your lender and your escrow agent.
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