Closing the Escrow

Once all the terms and conditions of both parties have been fulfilled and all closing instructions satisfied, the Escrow is closed and the safe and accurate transfer of property and money has been accomplished.

Division of Charges

The method of dividing the charges for the services performed through Escrow or as a result of Escrow varies from place to place. The fees and service charges to be divided might include, for example, the Title Insurance policy premium, Escrow fee, any transfer taxes, recording fees, and costs in connection with any loan being obtained. Unless there is some special agreement between the buyer and seller as to how these charges are to be paid, local custom will generally be followed in drafting the instructions to the Escrow Holder as to how they are to be divided.

In Summary

The Escrow process was developed to help facilitate the sale or purchase of your home. The Escrow Holder accomplishes this by:

• Acting as the impartial "stakeholder," or depository of documents and funds. 

• Processing and coordinating the flow of documents and funds. 

• Keeping all parties informed of progress on the Escrow. 

• Responding to the lender requirements. 

• Securing a Title Insurance policy. 

• Obtaining approvals of reports and documents from the parties as required. 

• Prorating and adjusting insurance, taxes, rents, etc. 

• Recording the deed and loan documents. 

• Maintaining security and accountability of monies and owing. 

It's Not Always This Simple

The examples and explanations described above are designed to acquaint you with the Escrow process and are based on relatively simple Escrows. Every Escrow is unique and most are more complex than explained here. If you have questions about the Escrow process, please contact us for further explanation.

Freedom Title Company, Inc.

Why do I need title insurance?

What is an Escrow and why is it needed?

Who May Hold Escrows?

Escrow Instructions

What Each Party Does in the Escrow Process