First, a little about "escrow". An escrow agent is hired to assure your property closes on time and the closing process goes smoothly. A home is said to be in escrow when in the closing transaction, funds is secured by a third party on behalf of a buyer and a seller when the exchange of money takes place. PayPal is a good example of an escrow company.
The escrow holder makes sure that the terms and conditions of the agreement between the two parties are reached in preparation of the sale being finished.
Escrow companies compile the following forms:
- 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
- Loan documents
- Tax statements
Closing on the home takes place when all of the procedures of the escrow are complete. All expenses like title insurance, inspections and real estate commissions are paid. You'll then obtain the title to the home and the title insurance gets dispersed as outlined in the escrow instructions.
The escrow agent receives a payment at the completion of closing. As your real estate professional, I'll inform you of the acceptable way of paying.