To finalize the sale of the home a neutral, third party called an escrow agent or closing agent will be engaged to insure that the transaction will close properly, fairly to both buyer and seller and other interested parties, and on time. The escrow agent makes certain that all terms and conditions of the seller’s and buyer’s agreement are met prior to the sale being finalized, including receiving funds and documents, completing required forms, and obtaining the release documents for any loans or liens that have been paid off with funds paid.
Documentation the escrow agent may be collecting includes:
- Loan documents
- State and county documents
- Tax statements
- Fire and other insurance policies
- Title insurance policies
- Homeowner’s Association estoppel certificate
- Terms of sale and any seller-assisted financing
- Requests for payment for various services to be paid out of escrow funds
Upon completion of ALL the instructions of the escrow, the actual closing will take place. A ll outstanding payments and fees are collected and paid at this time covering expenses such as title insurance, inspections, appraisal, and real estate commissions. Title to the property is then transferred to the buyer, proceeds of the sale are paid to the seller, and appropriate title insurance is issued as outlined in the escrow instructions. Prior to the close of the escrow, payment of funds shall be made in a form acceptable to the escrow agent.