Whether it's your first house or your next house, I'll advise you through the process. E-mail me at annegrimes@cox.net to get some free information.

What is Escrow?

 Stoneridge Realty & Property Management Services can walk you through closing - 760-727-3776
Escrow: A neutral, third party (known as the escrow holder or the escrow agent) is hired to assure your house closes on time and the money exchanging part of closing goes smoothly. Escrow holders hold money for "safe-keeping" in an exchange between a buyer and seller. PayPal is a good way to picture an escrow company.

The escrow agent insures that all terms and conditions of the seller's and buyer's agreement are met prior to the sale being finished. This includes receiving funds and paperwork, signing required forms, and getting the release documents for any loans or liens that were cleared with the transaction, assuring you have a clear title to your house before the purchase price is fully paid.

These are the legal forms that escrow agents 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 property takes place when all of the procedures of the escrow are complete. At this time, all payments and dues for inspections, title insurance and real estate commissions are collected. You'll then get the title to the house and the title insurance gets issued as stated in the escrow instructions.

The escrow holder gets a payment at the completion of closing. I'll keep you up-to-date on the next steps.

The Escrow Holder Will:

  • Assemble escrow instructions
  • Request title inquiry
  • Comply with 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 documents as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer are met
  • Disburse payments and finalize instructions

The Escrow Holder Won't:

  • Tell you what's best - the escrow holder has to remain an impartial, third-party status
  • Give insight about tax implications
The Escrow Holder Will:
The Escrow Holder Won't:
  • Assemble escrow instructions
  • Perform a title research
  • Comply with lender's guidelines as noted in the escrow agreement
  • Accept payments from the buyer
  • Prorate tax, interest, insurance and other fees according to instructions
  • Record deeds and other documents as instructed
  • Obtain title insurance policy
  • Close escrow when all terms of agreement of seller and buyer have been met
  • Disburse monies and finish instructions
  • Offer advice - the escrow agent must stay at a fair, third-party status
  • Offer opinions about the outcome of your taxes

Mortgage Escrow Account

Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your house. Usually, the home buyer makes a payment at closing and also makes regular deposits through their monthly mortgage payment to fund the Escrow Account.

Once you're comfortable with the escrow process, you can be a confident buyer.