Escrow is a neutral disinterested party who holds and disburses the party’s funds and prepares the loan and HUD documents and transfers the ownership of the property in accordance with written instructions and the terms spelled out in the purchase and sale agreement.
Once a purchase and sale agreement is signed between two parties; typically the buyer’s agent will set up escrow by dropping off the signed agreement and the earnest money check. The funds are placed in a trust account and are used towards the transaction.
The escrow officer will review the agreement and orders a title report and any other pertinent information. A letter to the buyer and seller will usually go out requesting any missing information at this time.
The buyer will arrange the financing for the property and the loan documents will be delivered to escrow with instructions on how to prepare them. The escrow officer will order payoffs, prepare the loan documents and transfer documents at this time. The buyer and seller will be contacted to sign the documents and transfer papers.
The lender will review all of the documents and upon approval will release the funds and approve the recording of the transfer deed and deed of trust. The verification of recording comes from the title company and then the funds are disbursed and the property is successfully transferred.
Related posts:
© 2003-
Recent Blog Comment