Rules for Using an Escrow Company

Whether it's your first property or your next place, I'll help you through the process. Contact me.

Closing the Sale in Oil City

Oil Region Realty, LLC can walk you through closing - (814) 677-2326

Escrow: When you're closing on your new property, an escrow company is used to ensure the transaction will close appropriately and in a timely manner. A property is said to be in escrow when in the closing transaction, payment is held by a third party on behalf of a buyer and a seller when the exchange of money takes place. PayPal is a good example of an escrow company.

The escrow company makes sure that the terms and conditions of the agreement between the two parties are performed in preparation of the sale being finished.

These are the pieces of paperwork that escrow agents usually look to collect:

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
Tax statements
Fire and other insurance policies

Closing on the property happens when all of the procedures of the escrow are done. All expenses like title insurance, inspections and real estate commissions are paid. Title to the house is then transferred to you as new homeowner and appropriate title insurance is issued as outlined in the escrow policy.

The escrow agent receives a payment at the completion of closing. I'll keep you up-to-date on the procedure.

The Escrow Holder Will:

Prepare escrow guidelines
Request title research
Meet the bank's guidelines as outlined in the escrow agreement
Intake payments from the buyer
Prorate tax, interest, insurance and other fees according to instructions
Record deeds and other paperwork as instructed
Request title insurance policy
Close escrow when all instructions of seller and buyer are complete
Disburse funds and finalize instructions

The Escrow Holder Will Not:

Tell you what's best - the escrow company stays at an impartial, third-party status
Give insight about tax implications

The Escrow Holder Will:		The Escrow Holder Won't:
Write escrow instructions Request title research Meet the bank's standards as outlined in the escrow agreement Accept payments from the buyer Prorate interest, insurance, tax and other payments according to guidelines Record deeds and other documents as instructed Request title insurance policy Close escrow when all terms of agreement of seller and buyer are met Disburse funds and finalize instructions		Offer advice - the escrow holder has to remain an impartial, third-party status Offer opinions about the outcome of your taxes

Mortgage Escrow Account

A Mortgage Escrow Account is established to pay on-going expenses while there is a loan on the house. Usually, the home buyer makes a payment at closing and also makes regular deposits through their monthly mortgage payment to fund the Escrow Account.

Now you know more about how to close on your future home. And, you can be a better informed home buyer and future homeowner.

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