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Steps to Closing on a House

 Silver International Realty, Inc. can walk you through closing - 561-929-5799
Escrow: To complete the sale of a property, a neutral, third party (the escrow agent) is engaged to assure the transaction will close perfectly and on time. A property is said to be in escrow when in the closing process, payment is held by a third party on behalf of two parties when the transaction is taking place. PayPal is a simple way to think of an escrow company.

The escrow company insures that all terms and conditions of the seller's and buyer's agreement are completed prior to the sale being finished. This includes securing monies and certificates, signing required forms, and seeking out the release documents for any loans or liens that were paid off with the transaction, assuring you have a free title to your place before the asking price is fully paid.

Escrow companies want to obtain the following records:

  • 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 home happens when the steps of the escrow are done. All outstanding payments and fees are collected and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the house is then transferred to you as buyer and correct title insurance is issued as outlined in the escrow instructions.

When closing is completed, you'll make a payment to the escrow company. As your real estate agent, I'll let you know what is an acceptable way of paying.

The Escrow Holder Will:

  • Assemble escrow instructions
  • Petition title search
  • 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
  • Request title insurance policy
  • Close escrow when all terms of agreement of seller and buyer have been met
  • Disburse payments and finish instructions

The Escrow Holder Will Not:

  • Advise you - the escrow holder stays a neutral, third-party status
  • Offer opinions about tax implications
The Escrow Holder Will:
The Escrow Holder Won't:
  • Prepare escrow guidelines
  • Request title research
  • Comply with the bank's standards as written in the escrow agreement
  • Intake funds 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 terms of agreement of seller and buyer are met
  • Disburse funds and finalize instructions
  • Offer advice - the escrow company must maintain a neutral, third-party status
  • Dispense opinions 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. Escrow Accounts are contributed to monthly by the home buyer (who is now the homeowner), but there is also a lump sum that goes into the account at closing.

This is a simple outline of the escrow process. Your individual plan could vary based on your bank and your escrow company.