Closing the Sale

 Lala Insurance & Realty can walk you through closing - 361-594-2553

Escrow
To finalize the sale of a place, a neutral, third party (the escrow agent) is employed to assure the process will close perfectly and on time. A property is said to be in escrow when in the closing transaction, payment is held by a third party on behalf of two parties when the exchange of money takes place. A simple way to understand what an escrow company does is to think of how you might use PayPal for Internet purchases.

Settling the last details like obtaining funds, completing forms, obtaining the documents for loans and liens, and making sure you get a clear title to the property before your purchase gets finalized are all parts of closing in which an escrow company is useful.

Buying a house for the first time gets to feeling overwhelming. We can help. Call us at 361-594-2553.

These are the legal forms that escrow companies usually look to collect:

  • 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
  • Terms of sale and any seller-assisted financing

Upon completion of all instructions of the escrow, closing can take place. All debts and fees are collected and paid at this time (covering expenses such as title insurance, taxes, real estate commissions). The property's title gets transferred to you and title insurance begins per the policies of your particular escrow process.

The escrow company gets a payment when the closing is complete. As your REALTOR, we'll inform you of the acceptable form of payment.

The Escrow Holder Will:
The Escrow Holder Won't:
  • Assemble escrow instructions
  • Request title inquiry
  • Comply with the bank's requirements as noted in the escrow agreement
  • Receive funds from the buyer
  • Prorate interest, insurance, tax and other payments according to instructions
  • Record deeds and other legal documents as instructed
  • Request title insurance policy
  • Close escrow when all instructions of seller and buyer are met
  • Disburse monies and finalize instructions
  • Give advice - the escrow agent stays a neutral, third-party status
  • Dispense opinions about tax implications

Mortgage Escrow Account

Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.

Now you know more about being in escrow. And, you can be a smarter home buyer and future homeowner.

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