The escrow must be provided with the necessary information to close the transaction. This may include loan documents, tax statements, fire and other insurance policies, title insurance policies, terms of sale and any seller-assisted financing, and requests for payment for various services to be paid out of escrow funds.
If the transaction is dependent on arranging new financing, it is the buyer’s or the buyer’s agent’s responsibility to make the necessary arrangements. Documentation of the new loan agreement must be in the hands of the escrow holder before the transfer of property can take place. A real estate agent can help identify appropriate lending institutions.
When all the instructions in the escrow have been carried out, the closing can take place. At this time, all outstanding funds are collected and fees- such as title insurance premiums, real estate commissions, termite inspection charges- are paid. Title to the property is then transferred under the terms of the escrow instructions and appropriate title insurance is issued.
Payment of funds at the close of escrow should be in the form acceptable to the escrow, since out-of-town and personal checks can cause days of delay in processing the transaction.
The following items represent a typical list of what an escrow holder does and does not do:
THE ESCROW HOLDER:
serves as the neutral “stakeholder” and the communications link to all parties in the transaction;
prepares escrow instructions;
requests a preliminary title search to determine the present condition of title to the property;
requests a beneficiary’s statement if debt or obligation is to be taken over by the buyer;
complies with lender’s requirements, specified in the escrow agreement;
receives purchase funds from the buyer;
prepares or secures the deed or other documents related to escrow;
prorates taxes, interest, insurance and rents according to instructions;
secures releases of all contingencies or other conditions as imposed on any particular escrow;
records deeds and any other documents as instructed;
requests issuance of the title insurance policy;
closes escrow when all the instructions of buyer and seller have been carried out;
disburses funds as authorized by instructions, including charges for title insurance, recording fees, real estate commissions and loan payoffs;
prepares final statements for the parties accounting for the disposition of all funds deposited in escrow (these are useful in the preparation of tax returns).
THE ESCROW HOLDER DOES NOT:
Your local title company should be happy to provide additional information.
For a free consultation, Contact Frank.
"Sand to Sea Properties, Inc. provided stellar customer service from beginning to end. Throughout the entire process Frank and Lisa guided us and were always available to answer any question or concern, and were prepared for any curve ball throughout the home buying process. Their expertise in real estate became such a comfort to know we were working with top notch individuals who were not just incredible at what they do, but also enjoyable to be around. We highly recommend Sand to Sea Properties for your home buying or rental needs."
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