If You Got Questions We Have Answers
Why do I need an Escrow?
You want the certainty that until all of the transaction's instructions have been followed, no money or property will exchange hands. Until all escrow requirements have been met, the escrow holder protects the money and/or documents. Then the escrow holder will release the money and transfer the title.
Who chooses the Escrow company?
The escrow holder is typically chosen by mutual consent of the partners in any transaction. The broker may suggest an escrow holder if a seller or broker is engaged in the transaction. However, the principals have the authority to choose an escrow holder who is qualified and has experience managing the specific form of escrow at hand.
How does it work?
The involvement of key parties in an escrow transaction, including the Buyer, Seller, Lender, and Borrower, prompts the Escrow Officer to draft, authorize, and deliver the Escrow instructions, typically documented in written form. If a broker is part of the transaction, they commonly provide the Escrow Officer with the necessary information to prepare your Escrow instructions and documentation.
The Escrow Officer will execute the Escrow following the directives laid out in the Escrow instructions. The Escrow is considered "closed" once all the conditions specified in the Escrow have been met or achieved. While each Escrow follows a standard framework, there may be variations due to the unique nature of your property and the specific transaction in question.
The duties of an Escrow Holder encompass several critical tasks, such as adhering to the deadlines established by the Principals and other involved parties, managing funds and/or documents in strict accordance with provided instructions, settling authorized bills, responding to legitimate requests from the Principals, finalizing the Escrow solely when all stipulated terms and conditions have been fulfilled, and disbursing funds as instructed, along with providing a comprehensive financial report at the Closing or as mutually agreed upon.
What fees and costs will be charged?
The State does not control escrow costs. Escrow Holders will levy fees consistent with the costs of providing the service, the obligation assumed, and the overhead costs that include a profit portion, just like any other firm. As a result, the fees will differ across companies and between counties. The Escrow Holder typically adheres to its minimal fee schedule, which stipulates additional fees based on the various components of your Escrow. Occasionally, an extra cost will be assessed for spending an exceptional amount of time on a particular transaction.
The price of other services, such as the title insurance policy, the Lender's fees, insurance, recording fees, etc., cannot be controlled by the escrow holder.
Upon request and considering that the information is available, your escrow officer will give you an estimate of the costs and fees associated with escrow as well as other fees.