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Closing the Sale in Coos County
Let's talk about "escrow". When you're closing on your new place, an escrow holder is used to insure the transaction will close properly and on time. A house is said to be in escrow when in the closing process, payment is held by a third party on behalf of a buyer and a seller when the exchange of money takes place. For example, in a Web transaction, PayPal is the neutral third party that obtains the buyer's cash, and then disburses the money to the seller.
The escrow agent makes sure that all terms and conditions of the seller's and buyer's contract are completed prior to the sale being finalized. This includes receiving payments and certificates, finishing required forms, and getting the release documents for any loans or liens that were cleared with the transaction, assuring you have a clean title to your place before the purchase price is fully paid.
These are the pieces of paperwork that escrow companies usually look for:
- 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 property happens when the steps of the escrow are done. At this time, all payments and dues for inspections, title insurance and real estate commissions are paid out. You'll then receive the title to the house and the title insurance gets issued as noted in the escrow instructions.
The escrow holder gets a payment when the closing is complete. We'll keep you up-to-date on what comes next.
The Escrow Holder Will:
The Escrow Holder Won't:
- Prepare escrow instructions
- Perform a title inquiry
- Meet lender's guidelines as written in the escrow agreement
- Receive payments from the buyer
- Prorate insurance, tax, interest and other payments according to guidelines
- Record deeds and other paperwork as instructed
- Request title insurance policy
- Close escrow when all instructions of seller and buyer have been met
- Disburse payments and finalize instructions
- Advise you - the escrow agent has to remain an impartial, third-party status
- Give insight about tax implications
Mortgage Escrow Account
A Mortgage Escrow Account is established to pay rolling fees while there is a loan on the house. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.
Once you have the ABCs of the escrow process down, you can be a informed buyer.