What is Escrow?

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An escrow holder is hired to assure your home closes on time and the process goes smoothly. When payment is held by a third party in a transaction between a buyer and a seller, it's in escrow. A simple way to think of what an escrow company does is to think of how you might use PayPal for online purchases.

The escrow holder is careful to assure that all terms and conditions of the seller's and buyer's agreement are completed prior to the sale being finished. This includes securing monies and documents, finishing required forms, and obtaining the release documents for any loans or liens that are to be paid off with the transaction, assuring you have a free title to your home before the agreed upon price is fully paid.

Quest Real Estate Services of Florida is perpared to assist you in locating local, tried and proven title companies to handle the escrow and closing of your real estate transaction.

Purchasing a home for the first time can be intimidating. We can help. E-mail us at june.relator@gmail.com to get some free information.

These are the pieces of paperwork that escrow holders usually look for:

  • Fire and other insurance policies
  • Title insurance policies
  • Terms of sale and any seller-assisted financing
  • Requests for payment for various services to be paid out of escrow funds
  • Loan documents
  • Tax statements

Closing on the home takes place when all of the procedures of the escrow are done. All expenses like title insurance, inspections and real estate commissions are paid. You'll then secure the title to the property and the title insurance gets issued as agreed upon in the escrow instructions.

When closing is done, you'll submit a payment to the escrow holder. As your REALTORS, we will inform you of the acceptable form of payment.

The Escrow Holder Will:
The Escrow Holder Won't:
  • Write escrow guidelines
  • Petition title research
  • Meet lender's guidelines as noted in the escrow agreement
  • Accept funds from the buyer
  • Prorate insurance, tax, interest and other payments according to instructions
  • Record deeds and other paperwork as instructed
  • Request title insurance policy
  • Close escrow when all terms of agreement of seller and buyer have been finished
  • Disburse monies and finalize instructions
  • Tell you what's best - the escrow company has to remain an impartial, third-party status
  • Give insight about tax implications

Mortgage Escrow Account

Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Usually, the home buyer makes a payment at closing and also makes regular deposits through their monthly mortgage payment to fund the Escrow Account.

Now you know more about being in escrow. And, you can be a more confident home buyer and future homeowner.

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