A quick briefing on the basics of the escrow process
If you’re about to close on a house, congratulations! Closing on a home is the most exciting day in any real estate transaction because it’s when you get the keys and take possession of your property. Many times, when you close on a home, the technical term for it is “close of escrow.”
The keys aren’t yours yet, but we’re here to break down the escrow process so you feel confident and ready to close on a home.
What is Close of Escrow?
Once the seller has accepted your offer on a home or other real property, your transaction is then placed into “escrow.”
There are three financial accounts present during escrow: the buyer’s, the seller’s, and the escrow account. The escrow account is a separate account used to hold funds and documents until all required terms of the real estate transaction are met.
“Escrow” refers to the impartial third party, typically an escrow agent or title company, that temporarily holds funds and documents until the deal is officially closed. The money and documents are to be disbursed and delivered to the appropriate parties by the escrow agent or title company when all transaction conditions have been met.
During the escrow process, the buyer puts down a deposit on the home, also known as earnest money. In exchange, the seller agrees to give the buyer time to wait for a bank appraisal, secure financing, get various inspections, buy insurance, and conduct a final walk-through.
The close of escrow comes into play once the buyer and seller agree to close the transaction. The buyer and/or lender transfers the money for the sale to the escrow account, and the escrow agent or title company transfers it to the seller. Once this is done, it completes the transaction, and the new homeowner takes possession of the property from the seller — the closing of escrow.
How Can Monarch Title Company Help?
Closing on your new home can mean quite a bit of paperwork in a short amount of time. Monarch Title Company can help make sure the escrow closing process is handled with minimal disruption so that you can focus on what’s important to you. Visit our website to learn more about our escrow closing services, or give us a call today.