Let's talk about "escrow". To finish the sale of a place, a neutral, third party (the escrow holder) is brought into the picture to assure the transaction will close correctly and on time. Escrow companies hold money for "safe-keeping" in a deal between a buyer and seller. PayPal is a simple way to think of an escrow company.
Tying up any loose ends like receiving funds, finishing forms, getting the documents for loans and liens, and assuring you get a spotless title to the house prior to your purchase gets finalized are all part of the job of the escrow holder.
Escrow companies want to acquire the following forms:
- 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
Upon completion of all instructions of the escrow, closing can take place. All debts and fees are taken and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the home is then transferred to you as new owner and appropriate title insurance is issued as outlined in the escrow instructions.
When closing is in it's last step, you'll pay the fees to the escrow holder. I'll keep you informed on the next steps.