Escrow
Escrow: Now What? refers to the crucial period after you’ve accepted an offer on your home and entered into an escrow agreement. This stage involves several key steps and is important for both buyers and sellers to understand. Here’s a brief overview:
1. What is Escrow?
Escrow is a neutral third-party service that holds funds, documents, and instructions from both parties until all terms of the sale are met.This ensures that both buyer and seller are protected during the transaction process.
2. Buyer’s Responsibilities
Once in escrow, the buyer typically completes a home inspection, finalizes mortgage approval, and secures homeowners insurance.They will also review and sign important documents related to the sale.
3. Seller’s Responsibilities
The seller may need to complete requested repairs, provide disclosures, and ensure the property is in agreed-upon condition for the buyer. Once all conditions are met, the seller prepares to transfer ownership.
4. Title Search and Insurance
During escrow, a title company conducts a title search to ensure the property is free of liens and legal issues. Title insurance is also arranged to protect both parties against any future title disputes.
5. Closing the Deal
Once all contingencies are removed, funds are transferred, and documents are signed, the escrow company finalizes the sale.The buyer gets the keys, and ownership officially transfers from seller to buyer.
6. What Happens After Escrow?
After escrow closes, the sale is complete! The buyer can now move into their new home, and the seller receives the proceeds from the sale.
Understanding the escrow process ensures a smooth transition from offer acceptance to closing, providing peace of mind for both parties throughout the sale.
Marlyna Torres is a dedicated real estate broker and the CEO of MJTorres Realty, serving clients across South Florida, the Sunshine State.