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What To Expect When You're Closing in Rolling Hills Estates, California
Escrow: To close the sale of a property, a neutral, third party (the escrow holder) is employed to assure the transaction will close perfectly and on time. Escrow companies hold money for "safe-keeping" in transactions between a buyer and seller. For example, in an Internet auction, PayPal is the reliable third party that obtains the buyer's payment, and then sends the money to the seller.
The escrow company insures that all terms and conditions of the seller's and buyer's agreement are reached prior to the sale being completed. This includes receiving funds and certificates, filling out required forms, and obtaining the release documents for any loans or liens that have been cleared with the transaction, assuring you have a clear title to your house before the agreed upon price is fully paid.
These are the records that escrow holders usually compile:
- Loan documents
- Tax statements
- 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
Closing on the house happens when all of the procedures of the escrow are done. At this time, all payments and dues for inspections, title insurance and real estate commissions are taken. The house's title goes to you and title insurance begins per the steps of your particular escrow process.
When closing is done, you'll submit a payment to the escrow company. I'll keep you up-to-date on the procedure.
The Escrow Holder Will:
The Escrow Holder Won't:
- Write escrow instructions
- Perform a title inquiry
- Meet the bank's standards as written in the escrow agreement
- Receive funds from the buyer
- Prorate interest, insurance, tax and other payments according to instructions
- Record deeds and other legal documents as instructed
- Obtain title insurance policy
- Close escrow when all instructions of seller and buyer are met
- Disburse payments and finalize instructions
- Give advice - the escrow holder must maintain a neutral, third-party status
- Offer opinions about future tax estimations
Mortgage Escrow Account
Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.
Now you know more about being in escrow. And, you can be a more informed home buyer and future homeowner.