Understanding how Escrow works – Provident Realty Group, Dublin, CA

The process of buying property for the first time can be intimidating. I can help. E-mail me at robert@providentrealtygroup.com .

What is Escrow?

Provident Realty Group can walk you through closing - 9259999531

First, a little about "escrow". To finalize the sale of a home, a neutral, third party (the escrow holder) is brought into the picture to assure the transaction will close correctly and on time. Escrow companies hold money for "safe-keeping" in transactions between a buyer and seller. For example, in a Web auction, PayPal is the neutral third party that obtains the buyer's money, and then hands over the money to the seller.

The escrow agent makes sure that the terms and conditions of the agreement between the sellers and the buyers are met in preparation of the sale being finalized.

The certificates the escrow agent may collect include:

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

Closing on the house happens when all of the procedures of the escrow are finished. All outstanding payments and fees are collected and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the house is then given to you as new homeowner and related title insurance is issued as noted in the escrow instructions.

When closing is completely finished, you'll submit a payment to the escrow agent. I'll keep you up-to-date on the next steps.

The Escrow Holder Will:

Write escrow guidelines
Request title research
Meet the bank's standards as outlined in the escrow agreement
Receive funds from the buyer
Prorate interest, insurance, tax and other payments according to instructions
Record deeds and other legal documents as instructed
Obtain title insurance policy
Close escrow when all terms of agreement of seller and buyer have been met
Disburse monies and finalize instructions

The Escrow Holder Won't:

Give advice - the escrow holder stays at an impartial, third-party status
Offer opinions about tax implications

The Escrow Holder Will:		The Escrow Holder Won't:
Assemble escrow guidelines Perform a title inquiry Meet lender's guidelines as outlined in the escrow agreement Receive funds from the buyer Prorate insurance, tax, interest and other payments according to instructions Record deeds and other legal documents as instructed Obtain title insurance policy Close escrow when all terms of agreement of seller and buyer have been met Disburse funds and finalize instructions		Give advice - the escrow company stays at an impartial, third-party status Dispense opinions about future tax estimations

Mortgage Escrow Account

A Mortgage Escrow Account is started to make payments for rolling fees while there is a loan on the house. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.

Once you have the ABCs of the escrow process down, you can be a more assured buyer.

Got a Question?

Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.