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

Buying property for the first time can be intimidating. Let me help you. E-mail me at robert@providentrealtygroup.com .

Buying Your Next Property: Closing

Provident Realty Group can walk you through closing - 9259999531

First, a little about "escrow". To close the sale of a house, a neutral, third party (the escrow holder) is brought into the picture to assure the transaction will close appropriately and on time. Escrow companies hold money for "safe-keeping" in an exchange between a buyer and seller. PayPal is a good way to picture an escrow company.

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 pieces of paperwork the escrow company 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

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 collected. You'll then obtain the title to the property and the title insurance gets issued as noted in the escrow instructions.

When closing is completely finished, you'll make a payment to the escrow holder. As your agent, I'll inform you of the acceptable form of payment.

The Escrow Holder Will:

Assemble escrow instructions
Request title inquiry
Comply with the bank's standards as noted in the escrow agreement
Receive payments from the buyer
Prorate insurance, tax, interest and other payments according to instructions
Record deeds and other paperwork as instructed
Request title insurance policy
Close escrow when all terms of agreement of seller and buyer are complete
Disburse funds and finish instructions

The Escrow Holder Will Not:

Advise you - the escrow agent must stay at a fair, third-party status
Offer opinions about future tax estimations

The Escrow Holder Will:		The Escrow Holder Won't:
Assemble escrow instructions Petition title inquiry Comply with the bank's guidelines as outlined in the escrow agreement Receive payments from the buyer Prorate interest, insurance, tax and other payments according to instructions Record deeds and other documents as instructed Request title insurance policy Close escrow when all instructions of seller and buyer have been met Disburse payments and finish instructions		Give advice - the escrow holder stays a neutral, third-party status Dispense opinions about future tax estimations

Mortgage Escrow Account

Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.

Now you know more about being in escrow. And, you can be a better informed home buyer and future homeowner.

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.