Don't let real estate industry jargon keep you from becoming a homeowner. We can help you navigate your way through the process. Contact the Sand and Land Team and we'll make sure you're a confident buyer.

The Home is Almost Yours

Escrow: To finish the sale of a house, a neutral, third party (the escrow holder) is engaged to assure the process will close appropriately and on time. A home is said to be in escrow when in the closing process, funds is secured by a third party on behalf of two parties (in this case, a buyer and a seller) when the exchange of money takes place. For example, in a Web purchase, PayPal is the secure third party that holds the buyer's funds, and then hands over the money to the seller.

 

Settling the last details like receiving funds, finishing forms, obtaining the documents for loans and liens, and assuring you get a clean title to the property prior to your purchase gets finalized are all part of the job of the escrow holder.

These are the documents that escrow companies usually look to collect:

  • Loan documents
  • 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

Upon completion of all instructions of the escrow, closing can take place. All expenses like title insurance, inspections and real estate commissions are paid. You'll then get the title to the house and the title insurance gets issued as agreed upon in the escrow instructions.

At the close of escrow, payments are submitted in an acceptable form to the escrow. I'll keep you updated on the procedure.

The Escrow Holder Will:

  • Write escrow guidelines
  • Petition title search
  • Meet lender's standards as specified in the escrow agreement
  • Accept payments from the buyer
  • Prorate tax, interest, insurance and other fees according to guidelines
  • Record deeds and other paperwork as instructed
  • Obtain title insurance policy
  • Close escrow when all terms of agreement of seller and buyer are met
  • Disburse payments and finish instructions

The Escrow Holder Will Not:

  • Give advice - the escrow company has to remain an impartial, third-party status
  • Dispense opinions about future tax estimations
The Escrow Holder Will:
The Escrow Holder Won't:
  • Assemble escrow instructions
  • Request title inquiry
  • Comply with the bank's standards as specified in the escrow agreement
  • Receive payments from the buyer
  • Prorate tax, interest, insurance and other fees according to instructions
  • Record deeds and other documents as instructed
  • Request title insurance policy
  • Close escrow when all instructions of seller and buyer have been finished
  • Disburse payments and finalize instructions
  • Give advice - the escrow agent stays a neutral, third-party status
  • Give insight about tax implications

Mortgage Escrow Account

Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.

Once you're familiar with the escrow process, you can be a more assured buyer.

Looking to Buy?

Are you looking to buy a house? Let us help you. Just fill out as much of the information below that you want and we'll get right back to you, with no obligation to you. We guarantee your privacy.

Your Information
Some Details

Sand and Land Team | Berkshire Hathaway HomeServices - Florida Realty

3377 Ocean Drive
Vero Beach, FL 32963