bojihomes

What Exactly Is Escrow?

So, what is escrow, exactly?

Escrow is an arrangement in which a neutral third party holds onto funds and key documents involved in a home sale, and then distributes them according to the agreement between the buyers and sellers. The escrow period begins when a seller accepts a buyer's offer, and ends at the closing table.  At RE/MAX, we perform Escrow in house rather than hiring a 3rd party.

 

Have your earnest deposit money in an easily accessible account when home shopping. This will enable you to move fast on an offer if you find your perfect place.

 

Purchasing a house isn't like buying shoes; there's a lot of money involved, a lot of steps to manage, and a lot at stake. So the buyers and sellers don't exchange money and documents directly with one another. They do it through the escrow account.

Escrow ensures accountability. Buyers want to be sure all contingencies are met (inspection, title report, secured mortgage, etc.) before the sellers cash any checks. Sellers want to make sure they receive funds before they hand over the deed.

What happens during escrow?

An escrow account opens up when buyers put down earnest money to show the sellers that they’re serious about buying the home. A RE/MAX Settlement/closing agent handles all the escrow work with help from the agents.

An escrow officer, or settlement agent, does the following:


• Holds funds and documents.
• Processes and facilitates the flow of documents and funds.
• Keeps all parties informed of progress.
• Responds to the lender's requirements.
• Secures a title insurance policy (if necessary).
• Obtains approval of reports and documents from all parties.
• Prorates and adjusts insurance, taxes, rents, fees, etc.
• Records the deed and loan documents.
• Keeps track of and holds onto money owed and money deposited.


 

Escrow closes when all the tasks, documents and funds are performed or secured by the escrow officer.

Get In Touch


Community Updates

Dry Dock

Restaurants of the Iowa Great Lakes

The Dry Dock, connected to Four Season's Resort offers a simplified menu, but consistent delicious food. One of the few restaurants on West Lake Okoboji, the Dry Dock offers up legendary breakfasts,

Dixon Family Chiropractic

Spirit Lake

Dixon Family Chiropractic is a clinic located on Hwy 9, east of Walmart, next to Pizza Ranch and has convenient hours.....open 6 days a week at 7:30 am, evenings and Saturdays. Formerly in the

More Info

Emerald Hills

Arnolds Park

Emerald Hills Golf Course is one of the premier golf courses in the Iowa Great Lakes. Golfers throughout Okoboji will tell you that compared to the rest of the golf courses around, Emerald Hills is

More Info

Subscribe To Our Newsletter

The newsletter is sent periodically and will updated you on the latest real estate news and offers.

Your browser is out-of-date!

Update your browser to view this website correctly.

Update my browser now

×