Escrow - Closing the Transaction

To finalize the purchase or refinance transaction, a third party (the escrow holder, a.k.a. escrow agent) is engaged to assure the transaction will close properly and on time. The escrow holder ensures that all terms and conditions of the principals'/lender's agreement(s) are met prior to the transaction being finalized, including receiving funds and documents, completing required forms, and obtaining the release documents for any loans or liens that have been paid off with the transaction, assuring you clear title to your property before the purchase price is fully paid.

Upon completion of all instructions of the escrow, closing can take place. All outstanding payments and fees are collected and paid at this time (covering expenses such as title insurance, inspections, commissions). Title to the property is then transferred and appropriate title insurance is issued as outlined in the escrow instructions.

At the close of escrow, payment of funds shall be made in an acceptable form to the escrow. As your transaction agent, I will inform you of the acceptable form.

Mortgage Escrow Account

A lender may require a Mortgage Escrow (aka Impound) Account be established to pay on-going expenses while there is a loan on the property. These expenses include property taxes, property insurance, mortgage insurance, and other escrow items. Generally, in the purchase of a home, the Escrow Account is partially funded at closing and the buyer makes on-going contributions through their monthly mortgage payment.