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Closing the Sale in Norman, Oklahoma
First, a little about "escrow". A neutral, third party (known as the escrow holder or the escrow agent) is brought on to assure your home closes on time and the transaction goes smoothly.
A property is said to be in escrow when in the closing transaction, funds is secured by a third party on behalf of two parties when the exchange of money takes place.
PayPal is a simple way to think of an escrow company.
The escrow holder makes sure that the terms and conditions of the agreement between the two parties are met in preparation of the sale being completed.
Escrow holders look for the following legal documents:
- Loan documents
- Tax statements
- Fire and other insurance policies
- Title insurance policies
- Terms of sale and any seller-assisted financing
- Requests for payment for various services to be paid out of escrow funds
Upon completion of all instructions of the escrow, closing can take place.
All outstanding payments and fees are taken and paid at this time (covering expenses such as title insurance, inspections, real estate commissions).
The house's title is given to you and title insurance begins per the policies of your individual escrow process.
At the close of escrow, fees are paid in an acceptable form to the escrow.
You'll know when it's time to submit the form of payment.
The Escrow Holder Will:
The Escrow Holder Won't:
- Assemble escrow instructions
- Perform a title research
- Comply with lender's standards as specified in the escrow agreement
- Receive payments from the buyer
- Prorate insurance, tax, interest 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 complete
- Disburse funds and finalize instructions
- Advise you - the escrow company stays a neutral, third-party status
- Give insight about the outcome of your taxes
Mortgage Escrow Account
Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created.
Escrow Accounts are contributed to monthly by the home buyer (who is now the homeowner), but there is also a lump sum that goes into the account at closing.
This is a simple outline of the escrow process. Your individual plan might be different depending on your bank and your escrow agent.