An Overview About An Escrow
Whenever you are engaged in a financial transaction with another party and you need an impartial party to be involved to handle the fiduciary aspects of your transactions, an escrow company can help. With an escrow, the company will be able to help the parties in the coordination of the transaction between the seller and the buyer and to handle all aspects of the documentation of the transaction. An escrow company service is often utilized in many real estate transactions and it is a helpful process of expediting the processing of documents and payment.
What an escrow company will do is to help the parties remove any issues involving the property title by checking for any liens or encumbrances that may be attached to the property and to work closely with the title officer to ensure that any hidden defects on the title of the property will be discovered. With an escrow officer working to help clear any possible impediments to the transaction, the parties will be assured that no transfer of title and funds will be made until all the necessary documents have been completed and all of the conditions required in the transaction have been complied with.
Most of the time, the real estate agent will handle the escrow process where the parties will submit the documents like the purchase and sale agreement that provides for the terms and conditions of both parties including the earnest money and property title. All the financial details will likewise be submitted to the escrow for compliance of the party and until all conditions have been met, all of these will be under the safekeeping of the escrow company. However, the seller or the buyer may also initiate the opening of an escrow.
Depending upon the agreement of the parties, the escrow closing date will be provided to the escrow company which may usually take 30 to 90 days. There is actually no hard rules as of the closing date as long as the parties come into a mutual agreement. The escrow is only closed when all the terms and conditions have been duly fulfilled by both parties. You will be charged for the notary fees, escrow fee, title search fee, re conveyance fee, recording fees, commission of the real estate agent and many other charges. It is to your best interest to ask from the escrow company a rough estimate on how much the process will cost you so that you will be able to prepare a budget for the total costs that an escrow process will entail in your transaction.
The closing aspect of the escrow is the most important part as it will dictate the success of the transactions involved. The escrow company may now release all the necessary pertinent documents to the parties, including the title and the payment or the earnest money deposited to it. An escrow process will ensure that all transactions will be done and processed and all obligations required from the parties are duly complied with in order to perfect the real estate transactions covered by the escrow.