Don’t let Santa put you on the naughty list – it’s important to learn and understand what “escrow” is, especially if you’re thinking about jumping into the real estate market to purchase or sell a home.
A lot of real estate jargon might be new to you, and that is completely okay! Why would “liens” and “title” be a part of your everyday conversations? But that’s why AmeriTitle is here to help break down the steps to owning your first home.
In the real estate world, escrow refers to funds and documents that are held by an impartial third party (like AmeriTitle) on behalf of the buyer and seller and / or lender during the completion of the transaction.
Written instructions will be created and given to all parties involved, and it is only then that funds will be distributed and documents recorded in accordance to what the written instructions stated.
Santa wants you to have an Escrow
Escrows are convenient; they act as protection for both the buyer and the seller. All parties rely on the escrow holder to faithfully carry out their mutually agreed upon instructions – or, advise the parties if any of the instructions are contradictory or cannot be completed.
Once everything has been fulfilled within the terms and conditions of the written instructions, and all closing conditions are completed, the escrow is closed and the transfer of property and money is completed.
An Escrow in a Pear Tree – Seller
The seller is assured and feels confident that the transaction will properly close, and that the title will not pass to the buyer until the purchase price is fully paid.
Have Yourself a Merry Escrow – Buyer
The buyer is able to review the condition of the title to property by receiving a copy of the preliminary title report prior to closing, and of course, that the transaction will be properly completed and the title cleared.
You see? Nothing to fear. Having an escrow will benefit both buyer and seller and result in a smooth closing process. Now that’s something for Santa to put you on the nice list for!