Let's talk about "escrow". To finish the sale of a place, a neutral, third party (the escrow holder) is brought into the picture to assure the process will close perfectly and on time. Escrow agents hold money for "safe-keeping" in transactions between a buyer and seller. For example, in an Internet transaction, PayPal is the neutral third party that holds the buyer's funds, and then sends the money to the seller.
The escrow company makes sure that all terms and conditions of the seller's and buyer's negotiated agreement are completed prior to the sale being finished. This includes receiving funds and certificates, finishing required forms, and obtaining the release documents for any loans or liens that were paid off with the transaction, assuring you have a clean title to your place before the purchase price is fully paid.
Escrow companies want to acquire the following records:
- 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
Upon completion of all portions of the escrow, closing can take place. All expenses like title insurance, inspections and real estate commissions are paid. The home's title goes to you and title insurance is issued per the policies of your particular escrow process.
When closing is done, you'll submit a payment to the escrow holder. As your real estate agent, I'll inform you of the acceptable way of paying.