What Exactly Is Escrow?

So, what is escrow, exactly?

 

Escrow is an arrangement in which a neutral third party holds onto funds and key documents involved in a home sale, and then distributes them according to the agreement between the buyers and sellers. The escrow period begins when a seller accepts a buyer's offer, and ends at the closing table.  At Remax, we perform Escrow in house rather than hiring a 3rd party.
 
Have your earnest deposit money in an easily accessible account when home shopping. This will enable you to move fast on an offer if you find your perfect place.
 
Purchasing a house isn't like buying shoes; there's a lot of money involved, a lot of steps to manage, and a lot at stake. So the buyers and sellers don't exchange money and documents directly with one another. They do it through the escrow account.
Escrow ensures accountability. Buyers want to be sure all contingencies are met (inspection, title report, secured mortgage, etc.) before the sellers cash any checks. Sellers want to make sure they receive funds before they hand over the deed.
What happens during escrow?
An escrow account opens up when buyers put down earnest money to show the sellers that they’re serious about buying the home. A Remax Settlement/closing agent handles all the escrow work with help from the agents.
An escrow officer, or settlement agent, does the following:

• Holds funds and documents.
• Processes and facilitates the flow of documents and funds.
• Keeps all parties informed of progress.
• Responds to the lender's requirements.
• Secures a title insurance policy (if necessary).
• Obtains approval of reports and documents from all parties.
• Prorates and adjusts insurance, taxes, rents, fees, etc.
• Records the deed and loan documents.
• Keeps track of and holds onto money owed and money deposited.

 
Escrow closes when all the tasks, documents and funds are performed or secured by the escrow officer.

 

Get In Touch

Local Expert Updates

Greg Sheeler

Cell: 712.330.1573

Aaron Jones

Cell: 712.320.9442

Community Updates

Winther Stave & Co

Winther Stave & Co in Milford

At Winther, Stave & Co., LLP we use a team approach. You have a team of accounting professionals at your disposal, not just one person. With specialists in many different areas, we can draw on that breadth of knowledge and experience to help with services ranging from taxes, to payroll, to wealth preservation.

Real Estate and MLS Homes For Sale in Milford

Arnolds's Bark-ery and Grooming

Arnolds's Bark-ery and Grooming in Arnolds Park

Arnold's Bark-ery and Grooming is a great place to take your fur babies for their "puppy spa day!' Not only do they offer grooming services but they have a great boutique full of yummy treats and accessories. You can even order certain treats for holidays!

Real Estate and MLS Homes For Sale in Arnolds Park

Emagine

Emagine in Spencer

If you're looking for a creative take on web design, Emagine is the company for you. Their innovative approach to custom web design is second to none. Not only do they specialize in web design, but custom photography, print design, programming, mobile development, inbound marketing, e-commerce, video production, and more. This team offers a fully customized experience for each client. Their unique ideas, and forward thinking are sure to blow you away.

Real Estate and MLS Homes For Sale in Spencer

Subscribe To Our Newsletter