Escrow is a system of document transfers in which a deed, bond or funds are delivered to a third person to hold until all conditions in the contract are fulfilled. In other words, Escrow provides one central place where all funds & documents may be deposited.
What Is An Escrow Agent?
The Escrow Agent is a neutral third party acting on behalf of the buyer and seller. Their primary purpose is to close the transaction according to the Parties’ instructions. Usually this involves clearing Title, acting as an intermediary between various interested parties, preparing documents, disbursing funds, recording the deed and security documents, paying off existing liens or mortgages and the proration of real property taxes to ensure an accurate and complete closing.
Important Escrow Terms:
- Settlement Statement (HUD-1)
An itemized spreadsheet detailing all debits and credits associated with the closing of the transaction.
Filing documents for public record (and notice) with a registrar (i.e. the County) as required for completion of an Escrow transaction.