Don't let real estate industry jargon keep you from becoming a homeowner. I can help you understand the process. E-mail me at Katrina@ARealtyFL.com to get some free information.

Steps to Closing on a Property

 Absolute Equity Realty Group LLC can walk you through closing - 239-454-9300
Let's talk about "escrow". When you're closing on your new property, an escrow agent is used to guarantee the process will close correctly and in a timely manner. Escrow companies hold money for "safe-keeping" in a deal between a buyer and seller. An easy way to understand what an escrow company does is to think of how you might use PayPal for online purchases.

The escrow agent makes sure that the terms and conditions of the agreement between the seller and buyer are completed prior to the sale being completed.

These are the documents that escrow companies usually compile:

  • 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

You're ready to close when each step of the finished in escrow process. All debts and fees are collected and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the home is then transferred to you as new homeowner and appropriate title insurance is issued as outlined in the escrow instructions.

At the close of escrow, payment of funds shall be made in an acceptable form to the escrow. As your agent, I'll inform you of the acceptable form of payment.

The Escrow Holder Will:

  • Write escrow guidelines
  • Petition title search
  • Meet lender's guidelines as noted in the escrow agreement
  • Accept funds from the buyer
  • Prorate interest, insurance, tax and other payments according to guidelines
  • Record deeds and other paperwork as instructed
  • Request title insurance policy
  • Close escrow when all instructions of seller and buyer are met
  • Disburse payments and finish instructions

The Escrow Holder Won't:

  • Give advice - the escrow holder stays at an impartial, third-party status
  • Dispense opinions about tax implications
The Escrow Holder Will:
The Escrow Holder Won't:
  • Prepare escrow guidelines
  • Request title research
  • Meet the bank's standards as written in the escrow agreement
  • Receive payments from the buyer
  • Prorate interest, insurance, tax and other payments according to instructions
  • Record deeds and other documents as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer have been finished
  • Disburse funds and finish instructions
  • Advise you - the escrow holder must stay at a fair, third-party status
  • Offer opinions about the outcome of your taxes

Mortgage Escrow Account

Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Usually, the home buyer makes a payment at closing and also makes regular deposits through their monthly mortgage payment to fund the Escrow Account.

Once you have the basics of the escrow process down, you can be a better buyer.

Got a Question?

Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.

Your Information
Your Question