According to Realtor.com, escrow services is defined as “a process that provides for a fair and equitable transfer of property from one person to another.”
Escrow does include the money discussed and agreed to in the sale of property. But it also includes the paperwork and instructions on how to bring the sale to a complete close.
Who handles the escrow services, a lot of the time, is chosen by the lender. The buyer usually doesn’t have a lot of experience buying real estate while a mortgage company may handle a dozen or more property sales per week. Escrow should be handled by a third party.
Escrow begins when the escrow officer creates the account and assigns it a number. The officer then begins collecting the necessary items for the account. Where necessary, money is appalled to needed accounts and bills. If the deal is not completed, or falls though, money is returned to the appropriate people.
The financial escrow is typically going to include some property insurance premiums, pro-rated property taxes, title insurance, title search fees and possibly other fees the lender may require.
Every time one of the escrow items is completed, the buyer or seller will sign off on that item and the escrow officer will be notified.
Money can be held in escrow if the sale required work to be done and that work was not finished when the deal closed.
Escrow closes when the sale is completed and the deed recorded in the buyer’s name. The seller gets the money for the home and all other money is also distributed as appropriate.
For more help with escrow services, contact Wendy at http://www.EverythingTitle.com, or call (310) 927-0351