Escrow Info

What is Escrow?

Escrow is the process by which the interest of all parties in a real estate transaction are protected by ensuring that all conditions of the sale have been met before property and money change hands.

The escrow account is an independent depository wherein all funds, instructions, and documents for the sale of the home are held. including buyer’s down payment, lender’s funds, documents for the new loan, hazard and title insurance, inspection reports, and the grant deed.At the close of escrow, the “escrow holder”: delivers these items to the appropriate parties, disburses the funds, and handles the associated paperwork.

 What Does an Escrow Holder Do?

The escrow holder is a neutral third party that maintains the escrow account and impartially oversees the escrow process, making sure all conditions of the sale are properly met.

Duties of an Escrow Holder

  • Serves as the neutral agent and liaison betweel all parties involved.
  • Requests a Preliminary Title search to determine the status of the title to the property.
  • Requests a beneficiary statement from the current lender.
  • Requests a payoff demand from beneficiaries. (note holders)
  • Comply with the lender’s requirements as specified in their instructions to escrow.
  • Secure releases of all contingencies or other conditions imposed on the escrow.
  • Prepare or secure the deen and other documents related to escrow.
  • Prorate taxes, interest, insurance and rents.
  • Prepare escrow instructions.
  • Receive purchase funds from the buyer.
  • Receive loan funds from ghe buyer’s lender.
  • Close the escrow pursuant to instructions supplied to the seller, buyer and lender.
  • Record the deed and any other documents that require recording.
  • Deiburse funds as authorized by the instructions, including charges for title insurance, recording fees, real estate compensation, loan pay-offs and any recorded liens.
  • Prepare final statements for all parties involved that account for the disposition of all funds held in the escrow account.
  • Request the Title Insurance Policy.