Whether it's your first property or your next place, I'll advise you through the process. Contact me.

Escrow 101

 Stoneridge Realty & Property Management Services can walk you through closing - 7607273776
Let's talk about "escrow". An escrow company is brought on to assure your property closes on time and the closing process goes smoothly. Escrow companies hold money for "safe-keeping" in transactions between a buyer and seller. For example, in a Web transaction, PayPal is the reliable third party that holds the buyer's cash, and then sends the funds to the seller.

The escrow agent is careful to assure that all terms and conditions of the seller's and buyer's negotiated agreement are reached prior to the sale being finished. This includes getting monies and paperwork, completing required forms, and seeking out the release documents for any loans or liens that have been paid with the transaction, assuring you have a clear title to your place before the negotiated price is fully paid.

Escrow agents want to acquire the following legal documents:

  • 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

Upon finishing of all portions of the escrow, closing can take place. All outstanding payments and fees are taken and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the home is then transferred to you as now current homeowner and related title insurance is issued as noted in the escrow policy.

At the close of escrow, payments are submitted in an acceptable form to the escrow. I'll keep you informed on the procedure.

The Escrow Holder Will:

  • Assemble escrow guidelines
  • Petition title research
  • Comply with the bank's standards as specified in the escrow agreement
  • Intake funds from the buyer
  • Prorate insurance, tax, interest and other payments according to instructions
  • Record deeds and other paperwork as instructed
  • Request title insurance policy
  • Close escrow when all instructions of seller and buyer are met
  • Disburse payments and finalize instructions

The Escrow Holder Won't:

  • Offer advice - the escrow holder stays a neutral, third-party status
  • Dispense opinions about future tax estimations
The Escrow Holder Will:
The Escrow Holder Won't:
  • Assemble escrow instructions
  • Perform a title search
  • Meet the bank's requirements as noted in the escrow agreement
  • Receive payments from the buyer
  • Prorate interest, insurance, tax and other payments according to guidelines
  • Record deeds and other paperwork as instructed
  • Request title insurance policy
  • Close escrow when all terms of agreement of seller and buyer have been finished
  • Disburse funds and finalize instructions
  • Give advice - the escrow holder stays at an impartial, third-party status
  • Offer opinions about the outcome of your taxes

Mortgage Escrow Account

A Mortgage Escrow Account is established to make payments for recurring expenses while there is a loan on the 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.

Now you know more about how to close on your future home. And, you can be a smarter home buyer and future homeowner.


Stoneridge Realty & Property Management Services

1920 Shadowridge Drive #104
Vista, CA 92081