What is Escrow?
Once your offer on a home or other real property has been accepted by the seller, your transaction is then placed into "escrow."
"Escrow" is a term that describes the neutral third-party handling of funds, documents, and tasks specific to the closing (or settlement, as it is also known), as outlined on the real estate purchase agreement or sales contract. The purpose of escrow is to facilitate the transaction by managing the disbursement of funds and documents.
Why do I need Escrow?
Escrow facilitates the real estate transaction by managing the disbursement of funds and documents. It also provides assurance that no funds or property will change hands until all instructions for for the transaction have been completed.
Who are the key players?
These three parties will give instructions to the escrow officer to close the transaction.
Lender
Seller
Buyer
The Real Estate Professional provides the escrow officer with information necessary to create the escrow instructions.
Escrow Officer
The escrow officer will adhere to the instructions set forth by the principal members of the transaction and process the escrow in a quick and efficient manner, closing the escrow when all terms have been met. These terms often include completing a home inspection, purchasing home owners insurance, completing negotiated repairs, paying all authorized bills, disbursing funds in accordance with the instructions and providing the closing or settlement statement.
Escrow Settlement Services
At Minnesota River Valley Title & Abstracting we offer escrow and settlement services acting as a neutral third party. These duties include:
- Coordinating the signing of loan and closing documents
- Prorating and adjusting insurance, taxes, rents and more
- Recording loan and deed documents
- Preparing a final statement outlining funds received and to be distributed in the transaction
- Coordination of the flow of documents and funds
- Processing all documents and funds
- Informing both parties as to progress of escrow
- Responding to the lender's requirements
Contact Us:
To learn more about escrow services please give us a call or submit an online form today.
Licensed in Minnesota