|
Can
You Explain What An Escrow Is?
The buyer and seller conduct business with each other through a neutral
intermediary, your escrow company. Mutual written instructions by both parties
are carried out by the escrow holder to exchange property and funds.
When Do I Open An Escrow?
As soon as you and your other party are in complete agreement, a mutually
selected escrow officer should be called. Consider the professional advice of
your real estate agent.
What Does The Escrow Officer Need From Me?
Along with the terms of the sale the following are a list of items that are
most helpful to expedite your transaction.
Seller
1. Recent existing lender
statement(s).
2. Current Home Owner Association
documents.
3. Recent structural pest control
report (if required).
Buyer
1. Complete names & vesting
(seek tax advice as to consequences of how you take title).
2. Initial deposit check.
3. Terms of financing and new
lenders name .
4. Insurance agent information
The Escrow Offer Does:
Prepare instructions and specific documents. Order all necessary payoff or
assignment statements, homeowner association statements and title search.
Secure releases of existing liens of record and disburses documents in
accordance with mutual written instructions. Prepare all final statements for
principals, accounting as to the disposition of all funds deposited with the
escrow officer. Provide you with the assistance to close your transaction
quickly and effectively. Escrow officers are trained, experienced
professionals.
The Escrow Officer Does Not:
Act as a negotiator for the transaction or any terms thereof. Offer legal and
or tax advice. Offer investment advice.
|
 |
What Advice
Can I Get From The Escrow Officer?
Remember, and escrow officer cannot give legal advice. The purpose of escrow is
to carry out the mutual instructions of the buyer and seller. If there are any
disagreements between the principals, the escrow officer remains neutral until
an agreement is negotiated. The escrow officer does not become involved in the
negotiations.
Who Pays The Fees & Costs?
The charges of a transaction are dependent on the type and complexity of your
transaction and the terms of your agreement. Both your professional real estate
agent and your escrow holder can help you determine those costs. The seller
typically pays for those costs involved in assuring the buyer a clear title and
the buyer typically pays for any costs involved in the financing. The escrow
fees are normally paid one half each. There are exceptions to the rules, so be
sure to consult your professionals for help.
Who Can Answer My Questions?
Your primary consultant should be your real estate agent / broker if the
negotiations have been conducted through them. The escrow officer will often
refer you to the real estate agent/broker, legal counsel, or quite possibly a
tax advisor.
What Happens If The Transaction Cancels?
A cancellation agreement must be reached between the parties with mutual
written instructions calling, with live signatures, for the disposition of any
funds and or documents. Payment of any charges incurred should be considered
including fees and costs incurred by the lender, homeowners association, title
company and escrow holder. If the parties cannot agree, a court order may be
needed.
What Happens At Closing?
The closing can take place when all instructions have been complied with. After
all funds have been collected and costs paid, the property title can be
transferred. This transfer of title is called the "recording".
Recorded documents and title policies will be mailed to you after closing.
|
