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Escrow custodians for real estate transactions help ensure a smooth and secure exchange of goods and funds between buyer and seller.

Opening an escrow account

Once a purchase agreement is reached between the buyer and seller, both parties (or their respective agents) handle the transaction. They then open an escrow account with this third party entity.

Guarantee deposit

The buyer usually makes an initial deposit called an “Earnest Money Deposit” in the escrow account. This deposit demonstrates the buyer’s commitment to the transaction. The amount of the earnest money deposit can vary, but is usually a small percentage of the purchase price.

Inspections and due diligence

During a specified period, the buyer may conduct inspections, appraisals and other due diligence on the property. If problems or questions arise, the buyer and seller can negotiate to resolve them. The escrow holder can help facilitate these negotiations.

Opening an escrow account

Once a purchase agreement is reached between the buyer and seller, both parties (or their respective agents) handle the transaction. They then open an escrow account with this third party entity.

Guarantee deposit

The buyer usually makes an initial deposit called an “Earnest Money Deposit” in the escrow account. This deposit demonstrates the buyer’s commitment to the transaction. The amount of the earnest money deposit can vary, but is usually a small percentage of the purchase price.

Inspections and due diligence

During a specified period, the buyer may conduct inspections, appraisals and other due diligence on the property. If problems or questions arise, the buyer and seller can negotiate to resolve them. The escrow holder can help facilitate these negotiations.

Contingencies and conditions

The purchase agreement may include contingencies and conditions that must be met for the sale to go forward. They may include approval of financing, satisfactory inspection results or repairs to be made.

Custody instructions

Both parties, together with the escrow trustees or attorneys, provide written instructions outlining the conditions that must be met in order for the transaction to close. These instructions include details on the distribution of funds and documents.

Closing documents

Once all conditions and contingencies have been met, and both parties have signed the necessary documents, the escrow holder ensures that all documents have been properly executed.

Contingencies and conditions

The purchase agreement may include contingencies and conditions that must be met for the sale to go forward. They may include approval of financing, satisfactory inspection results or repairs to be made.

Custody instructions

Both parties, together with the escrow trustees or attorneys, provide written instructions outlining the conditions that must be met in order for the transaction to close. These instructions include details on the distribution of funds and documents.

Closing documents

Once all conditions and contingencies have been met, and both parties have signed the necessary documents, the escrow holder ensures that all documents have been properly executed.

Financing

The buyer usually contributes the necessary funds to the escrow custodian’s account to cover the purchase price, closing costs and any other agreed-upon expenses. This can be done by wire transfer or certified check.

Title search and title insurance

The escrow agent will usually perform a title search to ensure that there are no outstanding liens or encumbrances on the property. The buyer may also purchase title insurance to protect against any undiscovered title issues.

Final Statements

After closing, the escrow company provides final settlement statements to both the buyer and seller, detailing all financial transactions that occurred during the process.

Closing

Once all conditions are met and the funds are in the escrow account, the transaction can proceed to closing. At this stage, the escrow holder disburses the funds to the seller, transfers the title to the buyer and registers the transaction with the appropriate government authority.

Completion

Once the transaction has been successfully closed, the escrow process is completed and the property is transferred to the buyer.

Financing

The buyer usually contributes the necessary funds to the escrow custodian’s account to cover the purchase price, closing costs and any other agreed-upon expenses. This can be done by wire transfer or certified check.

Title search and title insurance

The escrow agent will usually perform a title search to ensure that there are no outstanding liens or encumbrances on the property. The buyer may also purchase title insurance to protect against any undiscovered title issues.

Closing

Once all conditions are met and the funds are in the escrow account, the transaction can proceed to closing. At this stage, the escrow holder disburses the funds to the seller, transfers the title to the buyer and registers the transaction with the appropriate government authority.

Final Statements

After closing, the escrow company provides final settlement statements to both the buyer and seller, detailing all financial transactions that occurred during the process.

Completion

Once the transaction has been successfully closed, the escrow process is completed and the property is transferred to the buyer.
The use of an escrow company or attorney provides a level of security and neutrality in real estate transactions, ensuring that both buyer and seller fulfill their respective obligations before the deal closes. It helps protect the interests of all parties involved and provides a structured and organized way to navigate the complexities of real estate transactions.