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  • Tax statements
  • 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
  • Whether it's your first place or your next place, I'll educate you through the process. Contact me.

    Escrow 101

     D'Addio Realty can walk you through closing - (561) 212-3347
    First, a little about "escrow". When you're closing on your new property, an escrow company is used to insure the transaction will close without problems and in a specific time frame. A property is said to be in escrow when in the closing process, payment is held by a third party on behalf of two parties (in this case, a buyer and a seller) when the exchange of money takes place. An easy way to understand what an escrow company does is to think of how you might use PayPal for online purchases.

    The escrow agent makes sure that the terms and conditions of the agreement between the two parties are completed prior to the sale being completed.

    The certificates the escrow holder may obtain include:

    Closing on the property takes place when the steps of the escrow are complete. All payments owed 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 transferred to you as new homeowner and appropriate title insurance is issued as noted in the escrow instructions.

    When closing is in it's last step, you'll pay the fees to the escrow agent. As your REALTOR, I'll let you know what is an acceptable form of payment.

    The Escrow Holder Will:

    • Write escrow instructions
    • Request title research
    • Comply with the bank's requirements as written in the escrow agreement
    • Intake 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 instructions of seller and buyer are complete
    • Disburse funds and finish instructions

    The Escrow Holder Won't:

    • Advise you - the escrow agent has to remain an impartial, third-party status
    • Offer opinions about tax implications
    The Escrow Holder Will:
    The Escrow Holder Won't:
    • Prepare escrow instructions
    • Perform a title inquiry
    • Meet the bank's requirements as written in the escrow agreement
    • Intake payments from the buyer
    • Prorate insurance, tax, interest and other payments according to guidelines
    • Record deeds and other documents as instructed
    • Request title insurance policy
    • Close escrow when all terms of agreement of seller and buyer are complete
    • Disburse payments and finalize instructions
    • Advise you - the escrow company must maintain a neutral, third-party status
    • Offer opinions about tax implications

    Mortgage Escrow Account

    Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.

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