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Closing the Sale in Winston-Salem, North Carolina
Escrow: An escrow company is brought on to assure your property closes on time and the transaction goes smoothly.
A place is said to be in escrow when in the closing process, funds is secured by a third party on behalf of two parties when the transaction is taking place.
PayPal is a simple way to think of an escrow company.
The escrow agent 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 legal forms that escrow holders usually look to collect:
- Loan 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
Closing on the property takes place when the steps of the escrow are done.
All debts and fees are collected and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions).
Title to the property is then given to you as buyer and appropriate title insurance is issued as noted in the escrow policy.
At the close of escrow, payments of funds are made in an acceptable form to the escrow.
You'll know when it's time to submit the form of payment.
The Escrow Holder Will:
The Escrow Holder Won't:
- Write escrow instructions
- Request title inquiry
- Comply with the bank's requirements as noted in the escrow agreement
- Intake funds from the buyer
- Prorate tax, interest, insurance and other fees according to guidelines
- Record deeds and other legal documents as instructed
- Request title insurance policy
- Close escrow when all terms of agreement of seller and buyer have been met
- Disburse monies and finish instructions
- Offer advice - the escrow agent must stay at a fair, third-party status
- Dispense opinions about the outcome of your taxes
Mortgage Escrow Account
Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created.
Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.
Once you have the ABCs of the escrow process down, you can be a informed buyer.