What is escow?
An escrow is an arrangement in which a neutral third party holds legal documents and funds on behalf of the Buyer and Seller and completes the transaction in strict accordance with the mutually consistent instructions all of the involved parties. It is this neutral third party that facilitates the payoffs of any outstanding liens, encumbrances, mortgages and unpaid taxes on a property and delivers a deed to the Buyer.
Escrow provides a mechanism for the safe and accurate transfer of real estate and money and adheres to a strict body of rules that govern real estate transactions. An escrow agent is a financially responsible and neutral third party that ensures the Buyer gets clear title to the property and the Seller gets the agreed upon sales price. Escrow protects the interests of all parties involved in the transaction. This neutral position helps avoid misunderstandings and friction which could jeopardize the sale.
Escrow agents:
· Ensure the payment of all liens and encumbrances against the property
· Perform all the details of prorating and adjusting accounts between the parties involved
· Ensure that the proper insurance policies have been obtained before the transfer of property
· Coordinates loan documents between the Lender and Buyer
· Receives funds from the Buyer and Lender
· Clears checks deposited by the Buyer
· Obtains title insurance for the protection of the Buyer and Lender
· Records all legal documents, including the deed
· Disburse funds between parties
· Furnish all parties a closing statement showing the distribution of funds
Escrow fees are based on the full sales price. Escrow fees are usually split between the Buyer and Seller; however, this can be changed by an agreement of the parties.
Wayne B. Pruner is a Realtor® at Oregon First, who works in the Tigard, Oregon area. I have extensive knowledge and experience in the Tigard area and I am ready to help you with all your real estate needs. I am also a licensed Oregon contractor with considerable experience remodeling and repairing homes. Wayne knows houses! My phone number is 503-891-0795. There is much information about buying and selling Tigard real estate at my website, Tigard Oregon Homes.
Comments(2)