Steps to Closing on a Property
Escrow
To finalize the sale of a house, a neutral, third party (the escrow company) is brought into the picture to assure the transaction will close appropriately and on time. 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 Web transaction, PayPal is the neutral third party that obtains the buyer's cash, and then disburses the funds to the seller.
Settling the last details like obtaining funds, signing forms, obtaining the documents for loans and liens, and making sure you a clean title to the home prior to your purchase gets finalized are all parts of closing in which an escrow company is useful.
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Whether it's your first place or your next place, we'll educate you through the process. Call us at 850-324-0177 or 850-712-4935 and we'll give you more information. |
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These are the records 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
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Closing on the property happens when the steps of the escrow are complete. All debts and fees are taken and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). You'll then get the title to the home and the title insurance gets issued as outlined in the escrow instructions.
The escrow agent gets a payment when the closing is complete. As your real estate professional, I'll inform you of the acceptable form of payment.
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The Escrow Holder Will: |
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The Escrow Holder Won't: |
- Write escrow instructions
- Request title inquiry
- Comply with the bank's guidelines as noted in the escrow agreement
- Intake payments from the buyer
- Prorate tax, interest, insurance and other fees according to instructions
- Record deeds and other paperwork as instructed
- Request title insurance policy
- Close escrow when all instructions of seller and buyer are complete
- Disburse funds and finalize instructions
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- Tell you what's best - the escrow company has to remain an impartial, third-party status
- Dispense opinions about the outcome of your taxes
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Mortgage Escrow Account
A Mortgage Escrow Account is established to pay rolling expenses while there is a loan on the house. Usually, the home buyer makes a payment at closing and also makes regular deposits through their monthly mortgage payment to fund the Escrow Account.
Now you know more about being in escrow. And, you can be a smarter home buyer and future homeowner. |
