Everything you want to know about escrow.
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This can vary depending on the details involved with your transaction, Most closings range between 30-60 days
The principals to the escrow - buyer, seller, lender, borrower - cause escrow instructions, most usually in writing to be created, signed, and delivered to the escrow officer. If a broker is involved, he/she will normally provide the escrow officer with the information necessary for the preparation of your escrow instructions and documents. The escrow officer processes the escrow, in accordance with the escrow instructions, and when all conditions required can be met or achieved, the escrow will be “closed”. Each escrow is unique.
The buyer, seller, lender, and borrower, all want the assurance that no funds or property will change hands until ALL of the instructions in the transaction have been followed. The escrow holder has the obligation to protect the funds and/or documents while they are in the possession of the escrow holder, and to disburse funds and/or convey title only when all provisions of the escrow have been complied with.
The documents and funds associated with a home sale that are kept in the custody of a neutral third party until the sale is finalized. Escrow companies make sure all of the parties adhere to their agreed upon terms.
Once the buyer and seller sign a purchase agreement, a real estate escrow account can be established to act as a neutral third-party during the remaining steps in the closing process, depending on the state.In some states, title companies or attorneys will act as third-parties in real estate transactions. Like a giant, impenetrable safe, the escrow company holds all funds and documents (and trust us, there are plenty of them) until the finalization of the home closing process. If you’re wondering how escrow works when buying a house, the simple answer is: a lot of documents. The seller must go through a series of hoops before selling his/her home to make sure all of the appropriate documentation is in place before transferring funds.
Some of the most common documents required in a real estate escrow transaction include:
– Copy of the Offer
– Sellers Disclosure Packet
– Termite Certificate
– HOA Documents and Transfer Fees
– Contingency Removal Form
– FIRPTA Affidavit
– Prequalification Letter
– Proof of Funds
– Commission Instructions
– Wire Transfer Instructions
-Documents for Deed Transfer
Having everything in order is one of the biggest parts of a successful escrow transaction. The documentation you’ll need to produce for your escrow agent will depend on whether you are the buyer or the seller. It’s always a good idea to confirm any and all paperwork that needs to be gathered with your real estate agent. Questions about documents or opening escrow? Click below.
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