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Completing the Transaction

 D'Addio Realty can walk you through closing - (561) 212-3347
First, a little about "escrow". To complete the sale of a house, a neutral, third party (the escrow holder) is brought into the picture to assure the process will close appropriately and on time. Escrow companies hold money for "safe-keeping" in a deal between a buyer and seller. A simple way to understand the concept of what an escrow company does is to think of the use of PayPal for Internet purchases.

The escrow company makes sure that all terms and conditions of the seller's and buyer's contract are met prior to the sale being finalized. This includes receiving payments and paperwork, signing required forms, and seeking out the release documents for any loans or liens that are to be paid with the transaction, assuring you have a free title to your place before the negotiated price is fully paid.

Escrow agents compile the following records:

  • 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
  • Title insurance policies

Closing on the house takes place when the steps of the escrow are finished. At this time, all payments and fees for inspections, title insurance and real estate commissions are collected. Title to the home is then given to you as new owner and correct title insurance is issued as outlined in the escrow instructions.

When closing is completed, you'll make a payment to the escrow holder. You'll know when it's time to submit the form of payment.

The Escrow Holder Will:

  • Write escrow guidelines
  • Petition title research
  • Comply with the bank's guidelines as outlined in the escrow agreement
  • Accept 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 are met
  • Disburse funds and finish instructions

The Escrow Holder Will Not:

  • Offer advice - the escrow company 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 search
  • Meet the bank's guidelines as specified in the escrow agreement
  • Receive funds from the buyer
  • Prorate tax, interest, insurance and other fees according to guidelines
  • Record deeds and other paperwork as instructed
  • Request title insurance policy
  • Close escrow when all terms of agreement of seller and buyer are met
  • Disburse monies and finalize instructions
  • Offer advice - the escrow holder stays a neutral, third-party status
  • Offer opinions about future tax estimations

Mortgage Escrow Account

A Mortgage Escrow Account is established to make payments for on-going expenses while there is a loan on the house. Escrow Accounts are contributed to monthly by the home buyer (who is now the homeowner), but there is also a lump sum that goes into the account at closing.

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