Whether it's your first place or your next house, I'll help you through the process. E-mail me at mark.hoffer@verizon.net .

Escrow 101

 Hoffer Realty Associates can walk you through closing - 8143712100
Let's talk about "escrow". To close the sale of a house, a neutral, third party (the escrow agent) is employed to assure the process will close appropriately and on time. Escrow companies hold money for "safe-keeping" in transactions between a buyer and seller. For example, in a Web purchase, PayPal is the neutral third party that obtains the buyer's funds, and then disburses the payment to the seller.

The escrow holder is careful to assure that all terms and conditions of the seller's and buyer's agreement are met prior to the sale being finalized. This includes getting monies and documents, finishing required forms, and seeking out the release documents for any loans or liens that were paid with the transaction, assuring you have a free title to your house before the agreed upon price is fully paid.

The documents the escrow agent may collect include:

  • Terms of sale and any seller-assisted financing
  • Requests for payment for various services to be paid out of escrow funds
  • Loan documents
  • Tax statements
  • Fire and other insurance policies
  • Title insurance policies

Closing on the property takes place when the steps of the escrow are complete. At this time, all payments and dues for inspections, title insurance and real estate commissions are paid out. You'll then obtain the title to the property and the title insurance gets dispersed as stated in the escrow instructions.

At the close of escrow, in an acceptable form to the escrow. I'll keep you informed on the procedure.

The Escrow Holder Will:

  • Prepare escrow guidelines
  • Petition title search
  • Comply with lender's standards as noted in the escrow agreement
  • Intake funds from the buyer
  • Prorate insurance, tax, interest and other payments according to instructions
  • Record deeds and other legal documents as instructed
  • Request title insurance policy
  • Close escrow when all terms of agreement of seller and buyer are complete
  • Disburse monies and finish instructions

The Escrow Holder Won't:

  • Tell you what's best - the escrow holder must maintain a neutral, third-party status
  • Offer opinions about future tax estimations
The Escrow Holder Will:
The Escrow Holder Won't:
  • Write escrow guidelines
  • Perform a title research
  • Comply with lender's requirements as noted in the escrow agreement
  • Receive payments from the buyer
  • Prorate interest, insurance, tax and other payments according to instructions
  • Record deeds and other legal documents as instructed
  • Obtain title insurance policy
  • Close escrow when all terms of agreement of seller and buyer are complete
  • Disburse payments and finish instructions
  • Tell you what's best - the escrow agent stays a neutral, third-party status
  • Offer opinions about tax implications

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.

This is a simple outline of the escrow process. Your individual plan may vary depending on your bank and your escrow company.


Profile Picture portrait37474.jpg