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What To Expect When You're Closing in Venice
Escrow: An escrow company is hired to assure your home closes on time and the money exchanging part of closing goes smoothly.
A home is said to be in escrow when in the closing process, payment is secured by a third party on behalf of a buyer and a seller when the exchange of money takes place.
For example, in a Web auction, PayPal is the reliable third party that obtains the buyer's money, and then disburses the funds to the seller.
The escrow agent makes sure that the terms and conditions of the agreement between the sellers and the buyers are completed prior to the sale being finalized.
These are the pieces of paperwork that escrow agents usually look for:
- Loan documents
- 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
You're ready to close when all steps 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 buyer and related title insurance is issued as outlined in the escrow instructions.
At the close of escrow, payments of funds are made in an acceptable form to the escrow.
We'll keep you up-to-date on the next steps.
The Escrow Holder Will:
The Escrow Holder Won't:
- Prepare escrow instructions
- Request title search
- Comply with lender's guidelines as outlined in the escrow agreement
- Intake funds from the buyer
- Prorate interest, insurance, tax and other payments according to guidelines
- Record deeds and other documents as instructed
- Request title insurance policy
- Close escrow when all instructions of seller and buyer are complete
- Disburse funds and finish instructions
- Give advice - the escrow company must stay at a fair, third-party status
- Offer opinions about future tax estimations
Mortgage Escrow Account
Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your 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.
This is a simple outline of the escrow process. Your particular methods may vary depending on your bank and your escrow holder.