First, a little about "escrow". To complete the sale of a home, a neutral, third party (the escrow holder) is brought into the picture to assure the transaction will close correctly and on time. Escrow agents hold money for "safe-keeping" in transactions between a buyer and seller. For example, in an online transaction, PayPal is the secure third party that obtains the buyer's cash, and then sends the payment to the seller.
Settling the last details like obtaining funds, signing forms, obtaining the documents for loans and liens, and making sure you get a clean title to the home before your purchase gets finalized are all part of the job of the escrow company.
The documents the escrow company may obtain include:
- 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
Upon finishing of all portions of the escrow, closing can take place. All expenses like title insurance, inspections and real estate commissions are paid. The house's title is given to you and title insurance is issued per the steps of your particular escrow agreement.
The escrow holder receives a payment at the completion of closing. As your REALTOR, I'll inform you of the acceptable way of paying.