Purchasing real estate for the first time can be confusing. Let me help you. E-mail me at craig@serenogroup.com to get some free information.

Completing the Transaction

 Craig Jelinek - Sereno Group can walk you through closing - 408-335-1425
Let's talk about "escrow". An escrow company is used to assure your place closes on time and the money exchanging part of closing goes smoothly. When money is held by a third party in a transaction between a buyer and a seller, it's in escrow. For example, in an Internet auction, PayPal is the reliable third party that obtains the buyer's cash, and then sends the payment to the seller.

The escrow agent makes sure that all terms and conditions of the seller's and buyer's contract are met prior to the sale being completed. This includes securing payments and records, filling out required forms, and getting the release documents for any loans or liens that have been paid with the transaction, assuring you have a clear title to your home before the purchase price is fully paid.

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

Upon finishing of all portions of the escrow, closing can take place. All expenses like title insurance, inspections and real estate commissions are paid. The house's title gets transferred to you and title insurance begins per the policies of your particular escrow agreement.

The escrow agent gets a payment when the closing is complete. I'll keep you updated on what comes next.

The Escrow Holder Will:

  • Prepare escrow instructions
  • Petition title research
  • Comply with the bank's standards as written in the escrow agreement
  • Accept funds from the buyer
  • Prorate tax, interest, insurance and other fees according to guidelines
  • Record deeds and other documents as instructed
  • Obtain title insurance policy
  • Close escrow when all terms of agreement of seller and buyer are met
  • Disburse payments and finish instructions

The Escrow Holder Won't:

  • Give advice - the escrow holder must stay at a fair, third-party status
  • Give insight about tax implications
The Escrow Holder Will:
The Escrow Holder Won't:
  • Write escrow instructions
  • Request title search
  • Meet lender's guidelines as outlined in the escrow agreement
  • Receive funds from the buyer
  • Prorate insurance, tax, interest and other payments according to instructions
  • Record deeds and other paperwork as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer have been met
  • Disburse monies and finish instructions
  • Offer advice - the escrow holder stays at an impartial, third-party status
  • Dispense opinions about the outcome of your taxes

Mortgage Escrow Account

A Mortgage Escrow Account is established to pay rolling fees while there is a loan on the house. Escrow Accounts are contributed to monthly by the home buyer (who is now the homeowner), but there is also a lump sum that goes into the account at closing.

Now you know more about how to close on your future home. And, you can be a smarter home buyer and future homeowner.

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