Completing the Transaction

Escrow
To finalize the sale of a home, a neutral, third party (the escrow company) is brought into the picture to assure the process will close properly and on time. A place is said to be in escrow when in the closing transaction, payment is secured by a third party on behalf of two parties (in this case, a buyer and a seller) when the transaction is taking place. A simple way to think of what an escrow company does is to think of the use of PayPal for Internet purchases.

The escrow agent insures that all terms and conditions of the seller's and buyer's agreement are reached prior to the sale being finalized. This includes getting funds and certificates, completing required forms, and getting the release documents for any loans or liens that have been paid with the transaction, assuring you have a clear title to your place before the agreed upon price is fully paid.

	Purchasing a house for the first time can be confusing. We can help. E-mail us at twolanes@twolanes.com.

Escrow companies compile the following legal documents: 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 Title insurance policies

You're ready to close when all steps are complete in escrow process. At this time, all payments and fees for inspections, title insurance and real estate commissions are collected. Title to the house is then transferred to you as now current homeowner and correct title insurance is issued as noted in the escrow instructions.

At the close of escrow, in an acceptable form to the escrow. I'll keep you informed on the through the procedure.

The Escrow Holder Will:		The Escrow Holder Won't:
Assemble escrow instructions Request title search Meet the bank's standards as specified in the escrow agreement Accept funds from the buyer Prorate insurance, tax, interest and other payments according to guidelines Record deeds and other legal documents as instructed Obtain title insurance policy Close escrow when all terms of agreement of seller and buyer are complete Disburse funds and finalize instructions		Advise you - the escrow agent stays a neutral, third-party status Offer opinions about tax implications

Mortgage Escrow Account

A Mortgage Escrow Account is started to pay rolling fees while there is a loan on the 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 familiar with the escrow process, you can be a more assured buyer.