What is Escrow?

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Services for Real Estate Pros with Chicago Title

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.

  1. Receives an order for opening escrow and title services
  2. Orders preliminary title report
  3. Prepares escrow instructions
  4. Orders demands for payoffs
  5. Reviews all documents received by escrow
    • Payoffs
    • Preliminary title
    • Loan package
    • Association documents - by laws etc.
  6. Presents all necessary documents for review and signature to buyer and seller
  7. Follow up on all activities to expedite closing i.e. insurance, loans etc.
  8. Receives proceeds of loan from the lender via title Determines closing date and advises all parties
  9. Coordinates with title for the recording of all documents and issuance of the title policy.
  10. 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.

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