What is an Escrow?

Escrow
To finalize the sale of a house, a neutral third party (the escrow holder) is brought into the picture to assure the transaction will close correctly and on time. Escrow holders hold money for "safe-keeping" in transactions between a buyer and seller. PayPal is an excellent example of an escrow company.

The escrow holder is careful to assure that all terms and conditions of the seller's and buyer's negotiated agreement have been completed before the sale is completed. This includes receiving funds and records, signing required forms, and getting the release documents for any loans or liens paid with the transaction, assuring you have a clean title to your place before the final price is fully paid.


	Whether it's your first property or your next property, we'll help you through the process. Call us at 401-255-1031, and we'll give you help to obtain the property you want.

Escrow agents want to obtain the following pieces of paperwork:

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

Loan documents

You're ready to close when all steps are complete in the escrow process. All outstanding payments and fees are taken and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the property is then transferred to you as the new owner, and related title insurance is issued as outlined in the escrow policy.

When closing is done, you'll make a payment to the escrow holder. As your REALTOR, I'll inform you of the acceptable way of paying.

The Escrow Holder Will:		The Escrow Holder Won't:
Write escrow guidelines Petition title research Meet the bank's requirements as written in the escrow agreement Intake payments from the buyer Prorate insurance, tax, interest, and other payments according to guidelines Record deeds and other paperwork as instructed Obtain title insurance policy Close escrow when all terms of agreement of seller and buyer have been finished Disburse payments and finish instructions		Tell you what's best - the escrow company stays at an impartial, third-party status Give insight into the outcome of your taxes

Mortgage Escrow Account

A Mortgage Escrow Account is often created to pay recurring costs while there's a loan on the house. Escrow Accounts are contributed monthly by the home buyer (now the homeowner), but a lump sum goes into the account at closing.

This is easy to understand guide about the escrow process. Your particular process could vary based on your bank and your escrow holder.