What Exactly Is Escrow?

So, what is escrow, exactly?

 

Escrow is an arrangement in which a neutral third party holds onto funds and key documents involved in a home sale, and then distributes them according to the agreement between the buyers and sellers. The escrow period begins when a seller accepts a buyer's offer, and ends at the closing table.  At Remax, we perform Escrow in house rather than hiring a 3rd party.
 
Have your earnest deposit money in an easily accessible account when home shopping. This will enable you to move fast on an offer if you find your perfect place.
 
Purchasing a house isn't like buying shoes; there's a lot of money involved, a lot of steps to manage, and a lot at stake. So the buyers and sellers don't exchange money and documents directly with one another. They do it through the escrow account.
Escrow ensures accountability. Buyers want to be sure all contingencies are met (inspection, title report, secured mortgage, etc.) before the sellers cash any checks. Sellers want to make sure they receive funds before they hand over the deed.
What happens during escrow?
An escrow account opens up when buyers put down earnest money to show the sellers that they’re serious about buying the home. A Remax Settlement/closing agent handles all the escrow work with help from the agents.
An escrow officer, or settlement agent, does the following:

• Holds funds and documents.
• Processes and facilitates the flow of documents and funds.
• Keeps all parties informed of progress.
• Responds to the lender's requirements.
• Secures a title insurance policy (if necessary).
• Obtains approval of reports and documents from all parties.
• Prorates and adjusts insurance, taxes, rents, fees, etc.
• Records the deed and loan documents.
• Keeps track of and holds onto money owed and money deposited.

 
Escrow closes when all the tasks, documents and funds are performed or secured by the escrow officer.

 

Get In Touch

Local Expert Updates

Matt Lippon

Cell: 712.330.0604

Greg Sheeler

Cell: 712.330.1573

Janie Eick

Cell: 712.339.0574

Aaron Jones

Cell: 712.320.9442

Community Updates

Haywards Bay

Haywards Bay in West Lake Okoboji

Haywards Bay on West Lake Okoboji boasts low approaches and one of the few areas on West Lake to offer sand beaches. Renowned for the "bay of the flags", you will know you are in Haywards bay because of the all the American flags on the end of the docks. Fishing is great in Haywards Bay and the sunsets are one in a million. To get to Haywards Bay by car, one would drive the east side of the lake on Lakeshore Dr.

Real Estate and MLS Homes For Sale in West Lake Okoboji Find more about West Lake Okoboji Learn More Here

Tweeter's

Tweeter's in Okoboji

Tweeter's Bar & Grill a great casual restaurant in Okoboji, no matter what you're craving. Their extensive menu makes it easy for large groups to gather, and appeal to all tastes. Tweeter's offers catering, daily specials, and nightly features. Since they're open year round, Tweeter's is a favorite among locals, and tourists alike.

Real Estate and MLS Homes For Sale in Okoboji Find more about Okoboji Learn More Here

SUNNYVILLE BAKERY

Real Estate and MLS Homes For Sale in SunnyvilleAgent Insight on the Sunnyville Bakery in Sunnyville City

Real Estate and MLS Homes For Sale in Arnolds Park Find more about Arnolds Park

Subscribe To Our Newsletter