What is Escrow?
By definition from Merriam-Webster Dictionary, an escrow is a noun: a deed, a bond, money, or a piece of property held in trust by a third party to be turned over to the grantee only upon fulfillment of a condition. Here is an example of what an escrow holder's job includes.
- Receives an order for opening escrow and title services
- Orders preliminary title report
- Prepares escrow instructions
- Orders demands for payoffs
- Reviews all documents received by escrow
- Preliminary title
- Loan package
- Association documents - by laws etc.
- Presents all necessary documents for review and signature to buyer and seller
- Follow up on all activities to expedite closing i.e. insurance, loans etc.
- Receives proceeds of loan from the lender via title Determines closing date and advises all parties
- Coordinates with title for the recording of all documents and issuance of the title policy.
- The escrow closing is accommodated by:
- Paying all existing bills and encumbrances
- Issuing the final settlement statement
- Delivers all documents to the appropriate parties
- Delivers funds to the seller and buyer, if any.