Escrow
To finalize the sale of the home a neutral, third party (the escrow holder, a.k.a. title agent) is engaged to assure the transaction will close properly and on time. The title agent insures that all terms and conditions of the seller's and buyer's agreement are met prior to the sale being finalized, including receiving funds and documents, completing required forms, and obtaining the release documents for any loans or liens that have been paid off with the transaction, assuring you clear title to your property before the purchase price is fully paid.

Upon completion of all instructions of the title agent, closing can take place. All outstanding payments and fees are collected and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the property is then transferred to the seller and appropriate title insurance is issued as outlined in the escrow instructions.

At the closing of the transaction ("the closing"), funds shall be made in an acceptable form such as a bank cashier's check to the title agent.

Escrow Account

An Escrow Account is established by the lender to pay on-going expenses while there is a loan on the house. These expenses include property taxes, home insurance, mortgage insurance, and other escrow items. Generally, the Escrow Account is created and partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.