In opening an escrow, the seller and buyer establish terms and conditions to facilitate the transfer of ownership of that property. These terms and conditions are given to a disinterested third party known as the escrow holder. The escrow holder has the responsibility of seeing that the terms and conditions are carried out.
Due to the technical nature of the transaction and because the escrow holder will be handling your money, it is advisable to select an established escrow company. Escrow instructions are written documents, signed by both parties, which direct the escrow officer in the specific steps necessary to close the transaction. Escrow instructions will include typically many individual items. The method by which the buyer intends to pay for the property, the agreed purchase price, time limits related to the transaction, funds disbursement, proration of taxes and prepaid insurances, etc. It is extremely important that these documents be READ carefully...word by word. In addition, it is important to know that these instructions do NOT completely supersede your sales contract, so be sure that items in the contract are not contradicted by items in the escrow instructions.
Remember also, you may negotiate who to use for escrow services with the other party to the transaction... your real estate agent should not select your escrow company. He certainly can make suggestions as to who he has used in the past with success, and those are important references for you to consider!
For quick questions, feel free to send a note and one of our real estate professionals will be in contact with you shortly!
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