Escrow is that bit that makes sure all is fair in love and war when you sell your home and both parties (seller and buyer) are satisfied and fairly treated during this most testing of processes. If you have ever sold a home before – or indeed purchased one – you will have been more than aware of the term "Escrow".
Once the contract has been signed by the seller and once the buyer has put pen to paper, he or she is legally obligated to go ahead with the purchase. Should the seller pull out of the deal and has already signed the contract they may be subject to an administration fee or penalty charge for breaking the contract.
The escrow officer will read the details of the contract and every piece of small print that details fully the sale of that property. The escrow officer can act as a peacemaker in any dispute, verify any parts of the contract that one party doesn't quite understand and generally make the entire process of selling or buying property go smoothly.
The escrow company will make sure the mortgage lender releases any monies at the same time as the deed is recorded so it will reflect the new ownership of the property at the same time. To ensure the transaction is complete and the sale of the home runs smoothly, the escrow officer must hire a neutral arbiter to handle the funds, documents and transfer.
That third party can be the escrow company and in many states, the escrow company will handle the arbitration of the home sale by itself. You may choose which escrow company you hire to handle the sale of your property and in much the same way as you would choose a lender, a real estate agent or a solicitor to handle the different episodes that go with any property sale. Although, in the majority of Real Estate transactions, the seller typically chooses the Escrow Company.
An escrow company will open the process by assigning an account number or reference number that is unique to your sale. The escrow officer will collect the buyer's deposit funds and any other documents which related to the sale of the property.
The escrow officer can be your hand holder during the process and are their for both the buyer and seller, to explain the fine details that you may be unsure of.
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Comments
I use the same Escrow Officer whenever I am able to choose. She definitely keeps everybody (including me) on their toes through the process.