What Are Escrow Fees? - (972) 504-8021

Whether it's your first property or your next house, I'll help you through the process. Call me at (972) 504-8021 and I'll give you more information.

What is Escrow?

Target Cost Realty, LLC can walk you through closing - (972) 504-8021

Let's talk about "escrow". To finalize the sale of a place, a neutral, third party (the escrow holder) is brought into the picture to assure the transaction will close properly and on time. When funds are held by a third party in a transaction between a buyer and a seller, it's in escrow. PayPal is a good way to picture an escrow company.

Tying up any loose ends like receiving funds, completing forms, securing the documents for loans and liens, and assuring you get a clear title to the property in preparation of your purchase gets finalized are all parts of closing in which an escrow agent is useful.

The certificates the escrow agent may collect include:

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
Terms of sale and any seller-assisted financing

Closing on the property happens when all of the procedures of the escrow are done. At this time, all payments and dues for inspections, title insurance and real estate commissions are paid out. You'll then secure the title to the property and the title insurance gets dispersed as noted in the escrow instructions.

At the close of escrow, payment of funds shall be made in an acceptable form to the escrow. As your real estate professional, I'll let you know what is an acceptable way of paying.

The Escrow Holder Will:

Assemble escrow guidelines
Request title search
Comply with the bank's guidelines as outlined in the escrow agreement
Intake payments from the buyer
Prorate tax, interest, insurance and other fees according to instructions
Record deeds and other documents as instructed
Request title insurance policy
Close escrow when all terms of agreement of seller and buyer have been met
Disburse funds and finish instructions

The Escrow Holder Won't:

Give advice - the escrow company must maintain a neutral, third-party status
Offer opinions about tax implications

The Escrow Holder Will:		The Escrow Holder Won't:
Write escrow guidelines Perform a title research Meet the bank's standards as noted in the escrow agreement Receive funds from the buyer Prorate tax, interest, insurance and other fees according to instructions Record deeds and other legal documents as instructed Obtain title insurance policy Close escrow when all instructions of seller and buyer are met Disburse payments and finish instructions		Offer advice - the escrow company stays a neutral, third-party status Give insight about tax implications

Mortgage Escrow Account

A Mortgage Escrow Account is started to make payments for on-going expenses 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.

This is a simple outline of the escrow process. Your particular plan may be unique depending on your lender and your escrow company.

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