First, a little about "escrow". An escrow agent is hired to assure your house closes on time and the transaction goes smoothly. Escrow companies hold money for "safe-keeping" in a deal between a buyer and seller. An easy way to think of what an escrow company does is to think of the use of PayPal for Internet purchases.
The escrow agent makes sure that the terms and conditions of the agreement between the sellers and the buyers are met in preparation of the sale being completed.
The records the escrow agent may secure 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. Title to the home is then given to you as now current homeowner and correct title insurance is issued as noted in the escrow policy.
The escrow holder receives a payment at the completion of closing. As your REALTOR, I'll let you know what is an acceptable way of paying.