Let's talk about "escrow". An escrow company is used to assure your home closes on time and the money exchanging part of closing goes smoothly. Escrow companies hold money for "safe-keeping" in transactions between a buyer and seller. PayPal is a good example of an escrow company.
The escrow agent insures that all terms and conditions of the seller's and buyer's negotiated agreement are performed prior to the sale being finished. This includes receiving payments and certificates, filling out required forms, and getting the release documents for any loans or liens that were paid with the transaction, assuring you have a free title to your house before the negotiated price is fully paid.
Escrow companies collect the following documents:
- 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
You're ready to close when all parts are done in escrow process. At this time, all payments and fees for inspections, title insurance and real estate commissions are collected. The home's title gets handed over to you and title insurance is issued per the policies of your particular escrow process.
When closing is completed, you'll pay the fees to the escrow holder. I'll keep you up-to-date on the next steps.