First, a little about "escrow". An escrow agent is used to assure your property closes on time and the transaction goes smoothly. Escrow agents hold money for "safe-keeping" in an exchange between a buyer and seller. For example, in a Web transaction, PayPal is the reliable third party that holds the buyer's funds, and then disburses the funds to the seller.
The escrow company makes sure that the terms and conditions of the agreement between the seller and buyer are performed in preparation of the sale being finalized.
These are the records that escrow holders usually look for:
- 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
- Terms of sale and any seller-assisted financing
Closing on the home takes place when the steps of the escrow are finished. All expenses like title insurance, inspections and real estate commissions are paid. Title to the home is then given to you as now current homeowner and related title insurance is issued as outlined in the escrow policy.
The escrow company gets a payment when the closing is complete. As your real estate agent, I'll let you know what is an acceptable form of payment.