Common Questions (F.A.Q.)
What is escrow?
Escrow is an independent/neutral third party that handles all documents and holds all funds in a real estate transaction until the contractual requirements have been met before deeds are recorded.
What is the escrow process?
Buyer or selling a home can be a complicated process from making an offer to home inspections, securing financing, and other requirements. The term “being in escrow” occurs when the Seller accepts the Buyer’s offer to purchase until the Buyer takes possession of the property. The first step in the escrow process is establishing an escrow account with a settlement agent where initial deposits and other payments are made. The Buyer then secures financing approval from a Lender, gets the home inspected and appraised, procures home insurance, and does a final walk through. When all requirements have been met, the settlement agent proceeds with closing.
How long does escrow take?
Every sale is different. In most cases, escrow can last between 30-60 days before the transaction can close. During contract negotiation, parties agree to an escrow timeline that is spelled out in the contract.
What is Vesting?
Vesting is how an owner wants to hold title to their property. There are various ways to hold title such as joint tenancy, tenancy in common, community property, sole ownership etc. Buyers may want to consult with their legal counsel for what is best for their situation.
What types of fees can be expected?
Escrow fees are not regulated by the State. Therefore, the fees will vary between companies and from county to county. Fees are typically based on the purchase price and there are often some additional charges such as a loan tie in fee, doc prep fee, archiving fees, etc.
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What happens if you cancel?
Escrow is cancelled by mutual consent of the parties to the transaction. An escrow cancellation agreement must be signed by both parties. Any funds in escrow will be disbursed based on the agreement between the parties