n real estate buyer. The escrow agent will hold
transactions, there needs money and property ownership
to be a way for the buyer until these conditions have been
to guarantee that the seller will met.
indeed pay the funds agreed upon.
In many for sale by owner
Similarly, the buyer needs a way transactions, both the seller and
to guarantee that, once his or the buyer open escrow accounts.
her deposit is paid, the seller There is no standard way of one
will hand over the deed or title or the other. Rather, it depends
to the property. on what you and the buyer agree.
This is where escrow comes into To process your escrow
play and can help make both instructions accordingly, the
parties life easier. escrow agent might ask you for
several pieces of information.
What is Escrow? You might not have all the
information available
As a for sale by owner home immediately, but you should get
seller, you are responsible for it to the escrow agent as soon as
setting up, or opening, the possible. This information
escrow account. The escrow agent includes, but is not limited, to
will be a third-party who is the following:
responsible for holding the title
or deed to the property as well •Your (the seller) name and
as earnest deposits made on address
behalf of the buyer. The purpose •Buyer’s name and address
of an escrow is to hold legal •Purchase agreement
documents and money until certain •Amount of deposit
conditions, agreed by you and the •Buyer’s insurance agent
•Lender’s or other financing have recently sold property are
party’s information good places to get
•Termite report information recommendations for an escrow
•Closing date agent. Ask the references about
their experience with the agent.
If there is an earnest money Did he return phone calls in a
deposit, the escrow agent will timely manner? Was he courteous
place it into a separate escrow and professional? Was he
account. The agent will then knowledgeable?
order a title search. In addition
to you and the buyer, the lender •Choose an escrow that has
will receive a report of this experience in for sale by owner
information. Any loan and housing transactions. It is best
interest fees charged by the to choose an escrow that has
lender will be included in the previously worked in a
escrow instructions. transaction in which the seller
did not work with a real estate
Choosing an Escrow Agent agent.
When you are choosing an escrow
agent, there are several factors •Choose an escrow with reasonable
that you should take into rates. Since rates vary from one
consideration. If you are working company to the next, it is a good
with a real estate attorney, he practice top shop around to get
or she might be able to act as an idea of the rates that are
the escrow agent as well. In any available.
case, here are some tips on
choosing an escrow agent. After talking with several escrow
agents and getting a feel for
•Choose a reputable escrow agent their professionalism,
or company. Friends or family who experience, and rates, you are
prepared to make an educated
decision.
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