First, a little about "escrow". To close the sale of a place, a neutral, third party (the escrow holder) is engaged to assure the process will close correctly and on time. A home is said to be in escrow when in the closing process, money is secured by a third party on behalf of two parties when the transaction is taking place. PayPal is a good example of an escrow company.
Clearing the final hurdles like receiving funds, completing forms, obtaining the documents for loans and liens, and assuring you get a clean title to the house before your purchase gets finalized are all part of the job of the escrow holder.
These are the records 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
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 obtain the title to the home and the title insurance gets dispersed as noted in the escrow instructions.
At the close of escrow, in an acceptable form to the escrow. You'll know when it's time to submit the form of payment.