Whether it's your first property or your next home, We'll walk you through the process.
Closing the Sale in Naples
Let's talk about "escrow". When you're closing on your new house, a neutral, third party (known as the escrow holder or the escrow agent) is used to make sure the transaction will close appropriately and in a certain amount of time.
Escrow companies hold money for "safe-keeping" in a deal between a buyer and seller.
For example, in an online auction, PayPal is the reliable third party that obtains the buyer's cash, and then hands over the payment to the seller.
The escrow agent makes sure that the terms and conditions of the agreement between the seller and buyer are performed in preparation of the sale being finalized.
These are the pieces of paperwork that escrow agents usually compile:
- 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
- Title insurance policies
Closing on the house happens when all of the procedures of the escrow are finished.
All payments owed and fees are taken and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions).
The property's title gets handed over to you and title insurance begins per the policies of your particular escrow agreement.
At the close of escrow, in an acceptable form to the escrow.
As your agents, we'll let you know what is an acceptable way of paying.
The Escrow Holder Will:
The Escrow Holder Won't:
- Write escrow guidelines
- Perform a title inquiry
- Comply with the bank's standards as specified in the escrow agreement
- Accept payments from the buyer
- Prorate insurance, tax, interest and other payments according to guidelines
- Record deeds and other paperwork as instructed
- Obtain title insurance policy
- Close escrow when all instructions of seller and buyer have been finished
- Disburse funds and finalize instructions
- Offer advice - the escrow agent has to remain an impartial, third-party status
- Give insight 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.
Now you know more about how to close on your future home. And, you can be a more confident home buyer and future homeowner.