Once your offer on a new home is accepted by the seller, the property is placed in “escrow,” but what exactly does that mean? If you have zero clue, don’t worry, Cesi Pagano & Associates is here to walk you through the escrow process.
What is Escrow?
By definition, escrow is the deposit of funds, a deed and other items to a neutral third party for the purpose of completing a real estate purchase.
Why Do I Need it?
Escrow facilitates the real estate transaction by managing the disbursement of fund and documents. It also assures that no funds or property will change hands until all instructions for the transactions have been completed.
Who is Involved?
The escrow process usually involves five different parties:
- Buyer, Seller, Lender = These three parties will give instructions to the escrow officer to close the transaction
- Real Estate Agent = Provides the escrow officer with the information necessary to create the escrow instructions
- Escrow Officer = Responsible for following the instructions set forth by the key members of the transaction (buyer, seller, lender) and processing the escrow process correctly and efficiently.
When is Escrow Closed?
Escrow will close when all terms have been met. Most terms usually include:
- Completing a home inspection
- Purchasing home insurance
- Completing negotiated repairs
- Paying all authorized bills, fees, and charges
- Disbursing funds in accordance to instructions
- Providing the closing or settlement statement
Real estate transactions vary from state to state, but every transaction requires knowledge, understanding, and skilled coordination to close. If you’re looking to buy or sell your home in Southern California, Cesi Pagano & Associates would love to help! Give us a call today at 949-370-0819!
Cesi Pagano
949-370-0819
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