Escrow: Now What?
Congratulations, you are on your way to owning your very own home! Follow these suggestions (and your REALTORS® advice) so that escrow and settlement will go as smooth as possible.
Escrow is the neutral third party, or settlement agent, that holds the legal documents and funds on behalf of a buyer or seller. As a neutral third party, they execute the documents according to the buyer’s and seller’s mutually agreed-upon instructions.
Both the buyer and seller rely on the settlement agent to be neutral and impartial and carry out their instructions relating to the transaction and advise them if any of their instructions conflict.
Professional escrow settlement services are convenient for both the buyer and seller since both parties can move forward separately, yet at the same time, since there’s a central contact person for gathering reports, loan commitments and funds, deeds, and many other items. If the instructions from all parties regarding the transaction are clearly drafted, fully detailed, and mutually consistent, the settlement agent can take multiple actions on their behalf without further consultation.
At the end of the day, this saves precious time and efficiently facilitates the transaction from start to finish.