First, a little about "escrow". To finalize the sale of a place, a neutral, third party (the escrow agent) is employed to assure the transaction will close correctly and on time. When payment is held by a third party in a transaction between a buyer and a seller, it's in escrow. PayPal is a good way to picture an escrow company.
The escrow holder makes sure that all terms and conditions of the seller's and buyer's agreement are reached prior to the sale being finished. This includes getting payments and records, signing required forms, and getting the release documents for any loans or liens that are to be cleared with the transaction, assuring you have a free title to your place before the purchase price is fully paid.
These are the legal forms that escrow holders usually look for:
- 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
- Terms of sale and any seller-assisted financing
You're ready to close when all parts are done in escrow process. At this time, all payments and fees for inspections, title insurance and real estate commissions are paid out. You'll then get the title to the home and the title insurance gets issued as outlined in the escrow instructions.
The escrow agent receives a payment at the completion of closing. I'll keep you up-to-date on what comes next.