Is escrow something I set up myself?
Buying or selling a property can feel like a whirlwind, whether it’s packing, cleaning and staging your home to get top dollar, or a seemingly endless revolving door of house tours and pre-qualification paperwork to file with your lender. The last thing any buyer or seller needs is one more to-do item on their plate. As a buyer or seller, you may be wondering: is escrow something I set up myself?
Escrow is an account that is opened with a neutral third party upon the buyer and seller agreeing to a contract. Escrow ensures the buyer and seller both fulfill their obligations to each other (and their lenders) before the sale is finalized. Escrow holds funds and documents for both parties until they are ready to close.
The good news, whether you are the buyer or the seller, is that escrow is not something you set up yourself. When writing the purchase contract, the buyer’s agent will usually include a desired escrow service, such as a title company. The other party, usually the seller, may agree to the terms or counter with an alternative selection. Once the terms are agreed upon, your realtor will send the contract to the escrow holder to initiate the account.
During the escrow period, the buyer deposits their earnest money into the escrow account and the seller’s property title is transferred to the title company for the title search. Once all the terms of the sale have been met, such as financing, inspections, appraisals and repairs, the title company will disburse the escrow funds to the appropriate parties, such as the seller, real estate agents and lenders. The escrow company will also file all the necessary documents with the county recorder’s office.
Escrow is not something you set up for yourself; this is one part of the buying or selling process that you get to wash your hands of. However, that’s also why it’s critical to choose a reputable title company to work with, one that you can trust to run the escrow process smoothly. Your real estate transaction’s success depends on it, which is why Clear Title is here for you. To learn more about our escrow and title services, as well as what sets us apart from other escrow services, call one of our offices today.
Pensacola: (850) 361-4029
Pace: (850) 994-3838
Pine Forest: (850) 202-8518