Who Pays the Escrow Agent?
When you are selling or buying a home, it’s highly recommended that you have an escrow agent to handle paperwork, the exchange of funds, deed recording and many of the other details associated with this complicated process. An escrow agent can be a specific escrow company, attorney or a title company – but the bottom line is that the escrow agent should be a neutral third party who helps protect both the seller and the buyer.
As such, the escrow agent’s services can be paid for by the seller, the buyer or both. Escrow agents typically receive about 1-2% of the sale of the home for their services. This cost can be split equally between the seller and buyer. However, there can be negotiations where a lopsided percentage is paid by each party. It’s even possible for 100% of the fees to be covered by just one of the parties.
Here are a few of the services you’ll receive from your escrow agent:
- Holding earnest money
- Dispersing money from the account as needed
- Ensuring all agreement terms are satisfied by both the seller and buyer
- Ensuring all necessary payments are made in a timely manner by both the seller and buyer
- Filing and recording all documents properly
- Settling disputes between the seller and buyer
- Keeping your personal information secure
- Closing the escrow account when appropriate
Some title companies offer escrow in addition to title services. Clear Title in Northwest Florida is one such title company. Owner Stephen R. Moorhead is a Board Certified Real Estate Attorney who is Board Certified in Real Estate Law. He helps clients set up secure escrow services; he also offers escrow services for clients who do not use Clear Title for other title services.
With 100s of years of combined experience, the team at Clear Title can help make homebuying and selling a smooth process. To schedule a meeting with our experts and explore our Pensacola title and escrow services, contact us today at (850) 202-8518 or visit ClearTitlenwfl.com.