Let's talk about "escrow". An escrow agent is hired to assure your home closes on time and the closing process goes smoothly. A place is said to be in escrow when in the closing process, payment is secured by a third party on behalf of a buyer and a seller when the transaction is taking place. PayPal is a good example of an escrow company.
The escrow holder makes sure that the terms and conditions of the agreement between the two parties are performed in preparation of the sale being finalized.
Escrow companies collect the following legal documents:
- 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
- Terms of sale and any seller-assisted financing
You're ready to close when every step is finished in escrow process. At this time, all payments and dues for inspections, title insurance and real estate commissions are taken. Title to the house is then transferred to you as new owner and appropriate title insurance is issued as noted in the escrow instructions.
At the close of escrow, fees are paid in an acceptable form to the escrow. As your real estate agent, I'll inform you of the acceptable form of payment.