What is Escrow?

 

A:

Once your offer on a home or other real property has been accepted by the seller, your transaction is then placed into "escrow."

"Escrow" is a term that describes the neutral third-party handling of funds, documents and tasks specific to the closing (or settlement, as it is also known), as outlined on the real estate purchase agreement of sales contract. The purpose of escrow is to facilitate the transaction by managing the disbursement of funds and documents. 

Key Players

In accordance with local custom, the buyer or seller involved in the transaction will select the escrow provider. This provider could be an escrow company, title officer or title/escrow attorney, depending upon many considerations, including the geographical location of the transaction.

Roles

The escrow provider may have a duty to arrange and/or track the requirements and contingencies outlined within the purchase contract. These might include home inspections, the purchase of homeowners insurance, the completion of negotiated repairs, and financing requirements. 

Process

Once all transaction contingencies are met, including the execution of all documents necessary to complete the transaction, the escrow company will disburse funds to the seller and other parties, all in accordance with the purchase agreement.

Cost

The cost of escrow services is covered by the buyer or seller as determined by local custom, market conditions or contractual agreements made within the purchase agreement. 

"Closing"

Once all the tasks described within the sales purchase agreement have been completed and the approriate funds are disbursed, the transaction is complete and the escrow closes. 

-----

For more info on the subject of Escrow, check out this helpful video.


Get Title Quote Here

Contact Us

First Name:*

Last Name:*

Phone:*

Email:*

Tell us more:


 

Mega Title, LLC

721 Route 34, Suite 3
Matawan, NJ 07747
Phone: 732-242-9835
Toll Free: 877-550-MEGA
Get Directions | See Detail

Connect with Us:

Testimonials

  • Samah and her team at Mega Title were efficient and professional in
    handling our refinance closing. I had used them in a prior refinance
    and was so impressed with the attention to detail that I came back
    this time again. They are accomodating to your schedule, meet the
    deadlines so they don't waste your time and most of all treat you as
    if you are their most important customer at all times. I couldn't ask
    for better service - they took care of everything. Just had to show
    up and sign.
  • As a real estate attorney, I have dealt with numerous title companies.
  • I recently refinanced my home. Mega Title really made my life much easier.
  • I really appreciated the excellent service and caring attitude during my refinance.
  • I can't express how impressed I am with your customer service!

View All