The Escrow Process Prepare and present your property
In a real estate transaction, escrow is an independent third party. When opening escrow, the buyer and seller determine the terms and conditions for the transfer of ownership of the property via the purchase contract. Escrow ensures that all mutually agreed upon terms and conditions are met before the transfer of ownership and distribution of funds.
• Providing a title report and title insurance.
• Ensuring that state and local transaction laws and rules are followed.
• Obtaining all necessary and notarized signatures from all parties.
• Ensuring the paperwork is legal and binding.
Escrow protects both you and the seller by managing the following tasks:
• Recording the transfer documents and ensuring their accuracy.
• Holding the buyer’s good-faith deposit (typically 3% of the purchase price).
• Receiving the down payment from the buyer.
• Disclosing escrow and title fees to all parties.
• Receiving funds from the buyer’s lender.
• Paying liens, any overdue tax, and HOA dues.
• Calculating prorated taxes, loan interest, and HOA fees.
• Distributing proceeds to the seller.
Von Kaenel Giambruno Real Estate Group | 19
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