Let's talk about "escrow". An escrow company is used to assure your place closes on time and the closing process goes smoothly. Escrow companies hold money for "safe-keeping" in a deal between a buyer and seller. An everyday way to understand what an escrow company does is to think of how you might use PayPal for online purchases.
The escrow company makes sure that the terms and conditions of the agreement between the seller and buyer are performed prior to the sale being finalized.
The records the escrow company may secure include:
- 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
- Loan documents
Closing on the house takes place when the steps of the escrow are complete. All debts and fees are taken and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the house is then given to you as buyer and correct title insurance is issued as noted in the escrow policy.
When closing is completed, you'll pay the fees to the escrow agent. As your REALTOR, I'll let you know what is an acceptable way of paying.