You’ve heard the word escrow before but what exactly does it mean and how does it pertain to my real estate needs?
What is it?
Escrow means putting away a deed or deposit of a certain amount of money into a third neutral parties custody until conditions have been met. Escrow or title companies often oversee a real estate transaction, from initial deposit to final funding, to ensure the process goes smoothly. The principals (buyer, seller, lender, borrower) to the escrow write instructions to be created signed, and delivered to the escrow officer. The escrow officer will then process the information and follow the instructions in order for the escrow to be met or achieved, only then can it be “closed.”
Every escrow is different in some aspects as it deals with your property and the transaction at hand.
What happens once the transaction is complete?
Once a real estate transaction is completed a loan servicing company may setup an escrow account on behalf of the borrower where a portion of the monthly payment is deposited for property taxes and insurance purposes. Once the escrow is closed then the home can officially change hands and become yours.
So, what is the function of an Escrow?
As a buyer, seller, lender, or borrower, you want the assurance that no funds or property will change hands until all of the instructions in the transaction have been followed. The escrow holder serves as a safeguard for the funds and/or documents and then have the obligation to convey a title only when all provisions of the escrow have been complied with.
Do I get to choose the Escrow?
Yes, you can, selection of the escrow officer is usually done by agreement between the principals. If you have a real estate broker involved in the transaction, normally the broker will recommend an escrow holder.
Need more information on an escrow or what are your next steps? Contact us here!
Author:Brian Cordova Phone: 210-865-7653 Dated: June 15th 2016 Views: 248 About Brian: Brian offers a wealth of knowledge when it comes to your real estate needs in San Antonio. Whether y...
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