FAQs about Escrow
Those who have never been part of a real estate transaction (either as a buyer, seller, lender, or borrower) may have no idea what escrow is. Perhaps you’ve heard of it, but you’re pretty fuzzy on the details. If that’s the case for you, not to worry – we at Neighborhood Escrow are always ready and willing to answer any questions you have about escrow and at anytime during your escrow transaction.
What is escrow?
Let’s start with the most fundamental question you need to know the answer to – what is escrow? Basically, escrow is a process in which a third party (Neighborhood Escrow, the escrow party), holds money and documents on behalf of all parties involved in a real estate transaction. The buyer, seller, lender, and borrower are the usual parties involved in a real estate transaction. The escrow company’s agent diligently follows all instructions provided from each party and makes sure all requirements indicated in the Residential Purchase Agreement and Joint Escrow Instructions are met before closing.
Why should I have an escrow account?
Relying on Neighborhood Escrow for all your escrow needs provides tremendous benefits. Our expert staff have been providing escrow services throughout the South Bay area for over 41 years. Rest assured that every detail of your escrow transaction will be meticulously taken care of by our agents. Using our escrow services gives you real peace of mind. You’ll know without a doubt that no property or money will change hands until all the purchasing conditions that all parties have agree on have been properly met. All instructions will be followed perfectly before your real estate transaction is complete.
Who hires the escrow company?
In many cases, the escrow agent is recommended by the real estate broker. It’s essential that the buyer, seller, and lender, all choose the escrow agent together. Know that you don’t have to choose the escrow agent recommended by your real estate broker because all escrow companies, including Neighborhood Escrow, are independent. We don’t receive any referral fees from real estate brokers to prevent any possible suspicion of partiality.
Why is responsible for paying for the escrow company?
There’s no doubt about it – real estate transactions are expensive. Just when you think you’ve paid for everything, up pops another expense. Many of the activities involved in closing escrow naturally have fees associated with them. For instance, there are fees for the document transfer tax, recording of the grant deed, title insurance, inspection fees, notary fees, and more. These kinds of fees are paid by either the seller or the buyer (and occasionally, depending on the circumstances, the lender will pay them). Whether the seller or buyer is responsible for paying the escrow company depends on the traditions and customary practices of the local area where the real estate transaction occurs and the preferences of all involved parties. Frequently, the buyer and seller decide to split the escrow company fees fifty-fifty.
Got more questions? Get answers today! Just call Neighborhood Escrow at 310-378-2456.
