First, a little about "escrow". An escrow agent is brought on to assure your property closes on time and the closing process goes smoothly. Escrow companies hold money for "safe-keeping" in transactions between a buyer and seller. PayPal is a simple way to think of an escrow company.
The escrow company makes sure that the terms and conditions of the agreement between the sellers and the buyers are reached in preparation of the sale being completed.
Escrow agents look for the following records:
- 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 finishing of all portions of the escrow, closing can take place. All expenses like title insurance, inspections and real estate commissions are paid. Title to the property is then given to you as now current homeowner and correct title insurance is issued as noted in the escrow instructions.
The escrow holder gets a payment when the closing is complete. I'll keep you up-to-date on what comes next.