What is Escrow?
Escrow is a service provided to the public with the means of protecting and handling of funds and documentation in real estate transactions.
Why is Escrow needed?
Whether you are a purchaser or a seller of real estate, you will want the assurance that no funds or property will be conveyed until all instructions have been met and followed. With the complexity of business, law, and tax structures, it takes a trained professional to supervise the transaction.
- Escrow Functions
- Prepares escrow instructions
- Serves as the communication link between all parties
- Performs background check of title
- Request beneficiary’s pay off statement
- Comply with lenders requirements
- Receive purchase fund from buyer
- Prepare or secure the transfer deed and other documents required
- Prorate any taxes, assessments, interest, rents according to instructions
- Secure the release of all escrow contingencies
- Record new deed
- Request issuance of title insurance policy
- Disburse funds, recording fees, loan payoffs, commissions, refunds
- Prepare final accounting documentation
- Escrow is closed when all documents are recorded and all instructions have been carried out.
- Escrow does not
- Offer legal advice
- Negotiate the transaction
- Offer investment advice