What Are Escrow Fees? - (707) 869-9067

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First, a little about "escrow". When you're closing on your new property, a neutral, third party (known as the escrow holder or the escrow agent) is used to assure the process will close properly and in a certain amount of time. A property is said to be in escrow when in the closing transaction, money is secured by a third party on behalf of a buyer and a seller when the transaction is taking place. For example, in an online transaction, PayPal is the secure third party that holds the buyer's cash, and then sends the money to the seller.

The escrow holder makes sure that the terms and conditions of the agreement between the sellers and the buyers are met in preparation of the sale being completed.

These are the pieces of paperwork that escrow holders usually look for:

Tax statements
Fire and other insurance policies
Title insurance policies
Terms of sale and any seller-assisted financing
Requests for payment for various services to be paid out of escrow funds
Loan documents

Upon finishing of all instructions of the escrow, closing can take place. All expenses like title insurance, inspections and real estate commissions are paid. Title to the property is then given to you as now current homeowner and appropriate title insurance is issued as outlined in the escrow instructions.

The escrow holder receives a payment when the closing is complete. As your REALTOR, I'll inform you of the acceptable way of paying.

The Escrow Holder Will:

Assemble escrow instructions
Petition title search
Comply with lender's standards as outlined in the escrow agreement
Receive funds from the buyer
Prorate interest, insurance, tax and other payments according to instructions
Record deeds and other documents as instructed
Request title insurance policy
Close escrow when all instructions of seller and buyer are met
Disburse funds and finish instructions

The Escrow Holder Won't:

Advise you - the escrow agent stays at an impartial, third-party status
Give insight about future tax estimations

The Escrow Holder Will:		The Escrow Holder Won't:
Prepare escrow instructions Petition title research Meet the bank's guidelines as noted in the escrow agreement Receive funds from the buyer Prorate interest, insurance, tax and other payments according to instructions Record deeds and other paperwork as instructed Request title insurance policy Close escrow when all instructions of seller and buyer are complete Disburse funds and finalize instructions		Tell you what's best - the escrow holder stays a neutral, third-party status Dispense opinions about the outcome of your taxes

Mortgage Escrow Account

A Mortgage Escrow Account is used to make payments for on-going expenses while there is a loan on the house. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.

This is a quick run-down of the escrow process. Your individual plan may vary depending on your lender and your escrow company.

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