6
Satisfying Contingencies - Before the escrow closing, the seller may be required to meet certain buyer requirements.
Before the escrow closing, the seller may be required to perform various steps such as: “strap” the water heater, install smoke detectors and low-flow toilets. Some local government regulations require additional“retrofits”.
7
The Closing - The escrow holder orders all loan documents to be prepared for the closing of the real estate sale.
The escrow company prepares the following documents for the clients: a deed for signature by the seller in favor of the buyer, and requires the buyer to deposit the balance of the cash consideration. At the “closing”, the escrow records the deed in favor of the buyer and tenders the net proceeds of sale to the seller after paying real estate commissions and seller’s closing costs, typically including the cost of the buyer’s policy of title insurance; one-half the escrow fees; and document preparation and recording fees.
The buyer’s “closing costs” which are deposited in escrow along with the cash consideration required to complete the purchase, include one-half of the escrow fees; the cost of the lender’s policy of title insurance; document preparation and recording fees; and prorations for secured property taxes and homeowner’s insurance.
Following the closing, the buyer becomes the owner of the property and takes possession.
Comments - add comment