Let's talk about "escrow". To complete the sale of a place, a neutral, third party (the escrow holder) is brought into the picture to assure the transaction will close appropriately and on time. When payment is held by a third party in a transaction between a buyer and a seller, it's in escrow. PayPal is a good example of an escrow company.
Settling the last details like receiving funds, finishing forms, obtaining the documents for loans and liens, and making sure you get a clean title to the home in preparation of your purchase gets finalized are all part of the job of the escrow agent.
Escrow agents look for the following forms:
- 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
- Loan documents
Closing on the property happens when the steps of the escrow are done. At this time, all payments and fees for inspections, title insurance and real estate commissions are taken. The property's title is given to you and title insurance is issued per the policies of your individual escrow process.
When closing is completely finished, you'll make a payment to the escrow agent. As your real estate agent, I'll let you know what is an acceptable way of paying.