One crucial phase stands between you and the realization of your real estate dreams: escrow. Often shrouded in mystery, the escrow process plays a pivotal role in the process.
In this comprehensive guide, we’ll delve into the nuances of the escrow process, demystifying its intricacies and empowering you with knowledge. Once your offer is accepted, the escrow process begins. Escrow serves as a contractual agreement between buyer and seller. As the neutral third party, an escrow agent manages the exchange of money and documents. The escrow agent ensures both parties adhere to their agreed terms. It’s their role to execute the instructions of both parties efficiently. They should only proceed without further consultation when instructions are clear.
Key Participants + Their Roles
Seller/Agent
- Delivers the Purchase Sale Agreement to the escrow agent
- Prepares necessary closing documents
Buyer/Agent
- Deposits closing funds with the escrow agent
- Approves title insurance and other agreement stipulations
- Completes and signs closing documents
Lender
- Provides loan documents and funds
- Specifies conditions for loan fund use
Escrow Agent
- Ensures title clarity and obtains title insurance
- Manages payoffs for existing property loans
- Receives funds from buyer and/or lender
- Adjusts for insurance, taxes, rents, etc.
- Prepares final statements for all parties, detailing closing costs
- Records the deed and, once recording is confirmed, distributes funds accordingly
By understanding the roles of each participant in the escrow process, you can proceed with confidence. Are you embarking on a real estate journey and need expert guidance? Our team of Surterre real estate specialists is here to help. Contact us today at SurterreProperties.com to leverage our expertise and ensure a smooth and successful transaction from start to finish.
