Whenever you buy or sell a property, there is usually a third party involved with the process. This third party can be an individual but is often a company with a representative. This third party is commonly called an escrow company, and their job is to be the impartial third party who is responsible for handling all of the money and documents during a property sale so that each party gets the right documents and payments when a property changes hands. Traditional Abstract, LLC has been in business for many decades and has earned the trust as an escrow company over that time. Choose them when it comes time to buy or sell a property.
Tell Me More About What an Escrow Company Does
As the homebuyer and seller sign contracts and negotiate details, the escrow company holds all pending documentation and money between the two groups. The agent maintains a fiduciary responsibility to all parties involved in the transaction. Once the sales process begins, documents and money will need to be exchanged between the parties involved, and the escrow company facilitates this. All money, funds, titles, and securities involved in the transaction are maintained during the closing process by the escrow company and until the property legally changes hands.
Basically, there are 3 main things that happen with an escrow company when it comes to buying and selling property. First, the buyer that puts up earnest money toward the purchase of a property gives that money to the escrow company, who holds that money in a secure account. Second, if the seller of the property has a mortgage, the escrow company will pay off that remaining balance with the proceeds of the purchase. And third, escrow companies will also distribute other expenses such as lender fees and real estate commissions.
But escrow companies also have other duties that they may perform. They may order services that are agreed upon by the buyer and seller. These services could include a home inspection, title search, a survey of the property, or other services. Additionally, escrow companies walk the buying and selling parties through the documents that they need to sign. They also send the completed paperwork to the courthouse for recording, send the closed loan packages to lenders, ensure prior loans are paid off, and that property taxes have been paid. Having a third party handle these important steps ensures that they are done properly and nothing gets overlooked or missed.