| What
Is An Escrow?
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| |
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
a 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. The Ulnicks can guide you in these non-escrow
matters. |
| How
does an 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
performed as required by the purchase agreement. Other elements
of the escrow include hazard and title insurance, and the
grant deed from the seller to buyer. Escrow cannot be completed
until these items have been satisfied and all parties have
signed escrow documents. |
How
do I open an escrow?
Either your real estate agent or the buyer's agent
may open escrow. As soon as you execute the Purchase Agreement,
your agent will place the earnest money deposit into an escrow
account at the escrow company. |
Where
does the Buyer's money go?
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 or trust account. |
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 30 to 45 days, but can range from a few days to several
months. |
What
happens next?
Unless the buyer is paying cash, the next step will be that
the buyer will apply for a mortgage loan. The Ulnicks will be
able to keep you informed about the progress of the loan application.
During the escrow process, you are still required to make your
payments on existing loans so that you do not incur any late
fees or damage to your credit rating. |
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