What Happens In An Escrow
If you are talking to a friend who is buying or selling a house I can almost guarantee that you will hear:
“Escrow is supposed to close in two weeks, but we are not sure we will close on time “
“We just opened escrow and we are almost done.”
“I don’t understand what is taking so long.”
“OMG this escrow has gone on forever. I hope we close soon.”
And so on…
In order to help with some of these questions let me explain.
Escrow is a legal agreement in which a third party controls the distribution of money or other assets until the two parties or principals in a real estate transaction have met the conditions put forth in the contract. The escrow company is an independent, neutral intermediary that manages the exchange of money. Escrow does not negotiate any terms of the contract. They will advise if there will be any consequences from any new negotiations.
Escrow’s job is only to distribute funds and record all documents. They also check to make sure all documents and been signed properly and ensure all the actions of the contract are adhered to. They work in concert with the title company to make sure the contracts are signed properly, and that all the documents are recorded properly. They also ensure that all the actions of the contract are adhered to.
It is very important to work closely with your escrow officer as well as your real estate agent. If you have questions or you do not understand something, ask questions. Asking questions will help to make sure that escrow can close on time and you will have a smooth manageable escrow.
If you have questions, please call me at (562) 544-0449.
Mary Ann Edwards – Re/Max College Park – BRE: # 01103542