STEP 10: PUT MONEY IN ESCR Y IN ESCROW
Part of the home-buying process involves putting money into escrow; the buyer is expected to put an initial deposit into escrow in order to make the contract binding, which then helps the contract move through and toward closure. Essentially escrow refers to a time period, not a place. Escrow is the period between 1) the time an offer of purchase is made on a property; and 2) the time when that property’s title is officially transferred from seller to the new owner. The escrow process is essential in cases in which the ownership of title will be changed. The money put into escrow, or the initial deposit amount collected as part of escrow, is considered as “earnest” money. How much money are you, the buyer, supposed to put into escrow? This totally depends on the terms as stipulated in the offer of purchase. An escrow agent or the seller's attorney who specializes in this period and process will be involved. The agent serves as a third party who enjoys a neutral state between seller and buyer, and helps provide assurance to both parties. The agent is also heavily involved in the actual transaction to ensure the clauses of the offer will be met completely, accurately, and satisfactorily. Further, the escrow agent serves as the manager of the trust account that holds the funds that will cover the value of the transaction. The money collected from the buyer is held in escrow until the seller completes his or her obligations, and transfers the title over to the buyer. After this transfer is authorized, verified, and completed, the payment is then remitted to the seller. The “earnest” money can be used to cover some of the down payment,
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