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Closing the Sale in Charlotte
Let's talk about "escrow". To close the sale of a house, a neutral, third party (the escrow holder) is engaged to assure the transaction will close properly and on time. A place is said to be in escrow when in the closing transaction, payment is held by a third party on behalf of two parties when the transaction is taking place. An everyday way to understand what an escrow company does is to compare it to PayPal for online purchases.
The escrow holder makes sure that the terms and conditions of the agreement between the sellers and the buyers are performed prior to the sale being finalized.
Escrow holders compile the following pieces of paperwork:
- Tax statements
- Fire and other insurance policies
- Title insurance policies
- Terms of sale and any seller-assisted financing
- Requests for payment for various services to be paid out of escrow funds
- Loan documents
You're ready to close when all parts are complete in escrow process. All expenses like title insurance, inspections and real estate commissions are paid. Title to the property is then given to you as new owner and correct title insurance is issued as noted in the escrow instructions.
At the close of escrow, payments are submitted in an acceptable form to the escrow. You'll know when it's time to submit the form of payment.
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The Escrow Holder Will: |
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The Escrow Holder Won't: |
- Assemble escrow guidelines
- Petition title research
- Comply with lender's guidelines as written in the escrow agreement
- Receive payments from the buyer
- Prorate tax, interest, insurance and other fees according to guidelines
- Record deeds and other paperwork as instructed
- Request title insurance policy
- Close escrow when all instructions of seller and buyer have been finished
- Disburse funds and finish instructions
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- Advise you - the escrow agent has to remain an impartial, third-party status
- Give insight about future tax estimations
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Mortgage Escrow Account
Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your 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 quick run-down of the escrow process. Your individual methods may be unique based on your bank and your escrow agent.