Rules for Using an Escrow Company

Whether it's your first house or your next property, I'll help you through the process. E-mail me at kristine@nantahalaproperties.com to get some free information.

Steps to Closing on a Property

Nantahala Real Estate Company, INC can walk you through closing - 8283213101

Escrow: When you're closing on your new property, an escrow company is used to ensure the transaction will close without problems and in a specific time frame. A place is said to be in escrow when in the closing transaction, payment is held by a third party on behalf of two parties (in this case, a buyer and a seller) when the transaction is taking place. An easy way to understand the concept of what an escrow company does is to compare it to PayPal for online purchases.

The escrow company is careful to assure that all terms and conditions of the seller's and buyer's agreement are met prior to the sale being finalized. This includes receiving payments and documents, completing required forms, and obtaining 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 agreed upon price is fully paid.

The documents the escrow agent may obtain include:

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
Terms of sale and any seller-assisted financing

You're ready to close when every step is complete in escrow process. At this time, all payments and fees for inspections, title insurance and real estate commissions are paid out. You'll then get the title to the home and the title insurance gets issued as noted in the escrow instructions.

When closing is in it's last step, you'll pay the fees to the escrow agent. I'll keep you up-to-date on the next steps.

The Escrow Holder Will:

Prepare escrow instructions
Request title search
Comply with the bank's requirements as noted in the escrow agreement
Intake funds from the buyer
Prorate insurance, tax, interest and other payments according to instructions
Record deeds and other legal documents as instructed
Obtain title insurance policy
Close escrow when all terms of agreement of seller and buyer have been met
Disburse funds and finish instructions

The Escrow Holder Won't:

Give advice - the escrow company must stay at a fair, third-party status
Give insight about the outcome of your taxes

The Escrow Holder Will:		The Escrow Holder Won't:
Prepare escrow guidelines Petition title search Meet the bank's guidelines as noted in the escrow agreement Accept payments from the buyer Prorate insurance, tax, interest and other payments according to instructions Record deeds and other documents as instructed Request title insurance policy Close escrow when all terms of agreement of seller and buyer have been met Disburse funds and finish instructions		Give advice - the escrow company stays at an impartial, third-party status Dispense opinions about future tax estimations

Mortgage Escrow Account

Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Escrow Accounts are contributed to monthly by the home buyer (who is now the homeowner), but there is also a lump sum that goes into the account at closing.

Now you know more about being in escrow. And, you can be a better informed home buyer and future homeowner.

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