The escrow company makes sure that the terms and conditions of the agreement between the two parties are met prior to the sale being completed.
The pieces of paperwork the escrow holder may secure include:
You're ready to close when all steps are finished in escrow process. At this time, all payments and dues for inspections, title insurance and real estate commissions are collected. The property's title gets handed over to you and title insurance is issued per the steps of your particular escrow agreement.
The escrow company gets a payment at the completion of closing. As your agent, I'll let you know what is an acceptable form of payment.
Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Escrow Accounts are contributed to monthly by the home buyer (who is now the homeowner), but there is also a lump sum that goes into the account at closing.
This is a quick run-down of the escrow process. Your particular methods might be different depending on your bank and your escrow agent.
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