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Closing the Sale in Delray Beach, Florida

 Silver International Realty, Inc. can walk you through closing - 561-929-5799
Escrow: When you're closing on your new home, an escrow holder is used to insure the process will close appropriately and in a timely manner. A place is said to be in escrow when in the closing process, payment is secured by a third party on behalf of two parties 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.

Clearing the final hurdles like receiving funds, signing forms, securing the documents for loans and liens, and making sure you get a clear title to the house in preparation of your purchase gets finalized are all parts of closing in which an escrow company is useful.

These are the legal documents that escrow holders usually look for:

  • 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

Closing on the house happens when the steps of the escrow are finished. All payments owed and fees are taken and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions). You'll then receive the title to the property and the title insurance gets dispersed as noted in the escrow instructions.

When closing is completed, you'll make a payment to the escrow agent. You'll know when it's time to submit the form of payment.

The Escrow Holder Will:

  • Write escrow guidelines
  • Petition title inquiry
  • Meet the bank's standards as noted in the escrow agreement
  • Accept payments from the buyer
  • Prorate insurance, tax, interest and other payments according to guidelines
  • 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 finished
  • Disburse monies and finish instructions

The Escrow Holder Won't:

  • Offer advice - the escrow agent stays a neutral, third-party status
  • Give insight about tax implications
The Escrow Holder Will:
The Escrow Holder Won't:
  • Prepare escrow guidelines
  • Petition title inquiry
  • Meet lender's requirements as outlined in the escrow agreement
  • Intake payments from the buyer
  • Prorate interest, insurance, tax and other payments according to guidelines
  • Record deeds and other documents as instructed
  • Request title insurance policy
  • Close escrow when all instructions of seller and buyer are met
  • Disburse payments and finish instructions
  • Offer advice - the escrow holder must maintain a neutral, third-party status
  • Give insight 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. Usually, the home buyer makes a payment at closing and also makes regular deposits through their monthly mortgage payment to fund the Escrow Account.

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