When opening a real estate escrow, the buyer and seller of a piece of property establish terms and conditions for the transfer of ownership of that property. These terms and conditions are given to a third party know as the escrow holder. The escrow holder, in turn has the responsibility of seeing that the terms of the escrow are carried out. the escrow is an independent neutral account and the vehicle by which the mutual instruction of all parties to the transactions are complied with.
How
Does the Escrow Process Work?
A
real estate escrow is a depository for all monies, instructions and
documents necessary for the purchase of your home,
including your funds for down payment and your lenders funds and
documents for the new loan. Generally the buyer deposits a down payment
with the escrow holder and the seller deposits the deed and any other
necessary papers with the escrow holder. Prior to the close of escrow
the buyer deposits the funds required and agreed upon by the parties to
the sale with the escrow holder. The buyer instructs the escrow holder
to deliver the monies to the seller when the escrow holder:
The escrow holder thus acts for both parties and protects the interests of each within the authority of the escrow instructions. Escrow cannot be completed until the instructions have been satisfied and all parties have signed escrow documents. The escrow holder takes instructions based on the terms of the purchase agreement and the lender's requirements.
Information offered by : Crescent Moon Realty, Inc.---Get you "FREE" Home buyers guide today.
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- records the deed,
- delivers to the buyer a policy of title insurance which shows title to the property, vested in the name of the buyer.
The escrow holder thus acts for both parties and protects the interests of each within the authority of the escrow instructions. Escrow cannot be completed until the instructions have been satisfied and all parties have signed escrow documents. The escrow holder takes instructions based on the terms of the purchase agreement and the lender's requirements.
Information offered by : Crescent Moon Realty, Inc.---Get you "FREE" Home buyers guide today.
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