Escrow 101

 Dineen Realty can walk you through closing - 732-613-9300

Escrow
An escrow agent is hired to assure your property closes on time and the transaction goes smoothly. When money is held by a third party in a transaction between a buyer and a seller, it's in escrow. For example, in an Web purchase, PayPal is the reliable third party that holds the buyer's funds, and then disburses the payment to the seller.

The escrow holder makes sure that the terms and conditions of the agreement between the sellers and the buyers are met prior to the sale being finalized.

Whether it's your first place or your next place, we'll educate you through the process. E-mail us at dineenrealty@yahoo.com.

These are the records that escrow holders usually compile:

  • 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
  • Fire and other insurance policies

You're ready to close when all parts are finished in escrow process. All outstanding payments and fees are taken and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the property is then given to you as buyer and related title insurance is issued as outlined in the escrow policy.

The escrow agent receives a payment at the completion of closing. I'll keep you informed on the on the next steps.

The Escrow Holder Will:
The Escrow Holder Won't:
  • Assemble escrow instructions
  • Petition title search
  • Meet the bank's guidelines as noted in the escrow agreement
  • Intake payments from the buyer
  • Prorate interest, insurance, tax and other payments according to instructions
  • Record deeds and other documents as instructed
  • Obtain title insurance policy
  • Close escrow when all terms of agreement of seller and buyer have been finished
  • Disburse payments and finalize instructions
  • Give advice - the escrow agent must maintain a neutral, third-party status
  • Dispense opinions about the outcome of your taxes

Mortgage Escrow Account

Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your house. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.

Once you're comfortable with the escrow process, you can be a confident buyer.

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