Settlment and Closing

Please contact the Norton Team directly for a preferred title company in your area.

 

Here are some common questions about the escrow process.

What is an Escrow?

 

An escrow is an independent “stakeholder” account and is the vehicle by which the interests of all parties to the transaction are protected.

 

The escrow is created after you execute the contract for the sale of your home and becomes the depository for all monies, instructions and documents pertaining to the sale. Some aspects of the sale are not part of the escrow. For example, the buyer and seller must decide which fixtures or personal property items are included in the sales agreement. Similarly, loan negotiations occur between the buyer and the lender.

 

How does the escrow process work?

 

The escrow officer takes instructions based on the terms of your Purchase Agreement and the lender’s requirements. The escrow officer can hold inspection reports and bills for work preformed as required by the purchase agreement. Other elements of the escrow include hazard and title insurance, and the grant deed from the seller to you. Escrow cannot be completed until these items have been satisfied and all parties have signed escrow documents.

 

How do I open an escrow?

 

In most all cases the real estate agent submits a request to open title. As soon as you execute the Purchase Agreement, the agent will place the buyers initial deposit into an escrow account at the escrow company.

 

How do I know where the buyer’s money goes?

 

Written evidence of the deposit is generally included in your copy of the sales contract. The funds will then be deposited in a separate escrow of trust account. You will receive a receipt for the funds from the escrow company.

 

What information do I need to provide?

 

You may be asked to complete a Statement of Identity as part of the paperwork. Because many people have the same name, the statement of Identity is used to identify the specific person in the transaction through such information as date of birth, social security number, etc. This information is considered confidential.

 

How long is the escrow?

 

The amount of time necessary to complete the escrow is determined by the terms of the Purchase Agreement. It is normally 45 to 60 days, but can range from a few days to several months.

What is title insurance?

 

Title insurance assures owners that they are acquiring marketable title. Title insurance is designed to eliminate risk or loss caused by defects in title from the past. Title insurance provides coverage only for title problems which were already in existence at the time the policy was issued.

The title company works to eliminate risks by performing a search of the public records or through the company’s title plant. The search consists of public records, laws and court decisions pertaining to the property to determine the current recorded ownership, any recorded liens or encumbrances or any other matters of record which could affect the title to the property.

 

 

*Information provided by a third party entity