Whether it's your first house or your next property, I'll walk you through the process. Contact me.

Completing the Transaction

 David Massey Real Estate can walk you through closing - (336) 226-9374
Escrow: To close the sale of a place, a neutral, third party (the escrow agent) is brought into the picture to assure the process will close correctly and on time. When money is held by a third party in a transaction between a buyer and a seller, it's in escrow. For example, in a Web purchase, PayPal is the reliable third party that holds the buyer's money, and then sends the money to the seller.

The escrow agent makes sure that all terms and conditions of the seller's and buyer's contract are performed prior to the sale being finished. This includes securing monies and paperwork, finishing required forms, and obtaining the release documents for any loans or liens that are to be paid with the transaction, assuring you have a clean title to your place before the purchase price is fully paid.

The certificates the escrow holder may obtain include:

  • 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 parts are finished in escrow process. All outstanding payments and fees are taken and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions). You'll then secure the title to the home and the title insurance gets issued as agreed upon in the escrow instructions.

The escrow holder gets a payment at the completion of closing. I'll keep you updated on what comes next.

The Escrow Holder Will:

  • Assemble escrow instructions
  • Perform a title inquiry
  • Comply with lender's guidelines as noted in the escrow agreement
  • Accept 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 terms of agreement of seller and buyer have been met
  • Disburse monies and finalize instructions

The Escrow Holder Won't:

  • Give advice - the escrow holder must maintain a neutral, third-party status
  • Dispense opinions about tax implications
The Escrow Holder Will:
The Escrow Holder Won't:
  • Prepare escrow guidelines
  • Request title search
  • Meet the bank's requirements as written in the escrow agreement
  • Accept funds from the buyer
  • Prorate tax, interest, insurance and other fees according to instructions
  • Record deeds and other documents as instructed
  • Request title insurance policy
  • Close escrow when all terms of agreement of seller and buyer have been met
  • Disburse funds and finish instructions
  • Offer advice - the escrow holder stays at an impartial, third-party status
  • Offer opinions about future tax estimations

Mortgage Escrow Account

Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. 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 specific methods might be unique depending on your bank and your escrow holder.

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