Tag Archive | “selling house”

Escrow Basics

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When you purchase a bungalow or sell it, it requires a a complicated process. Since this process involves high financial value, therefore in order for the security of both the buyer and the seller, the process of Escrow comes in. This is a process in which the funds are deposited by the buyer with a third party and when all the paper work is done the seller hands over the documents to the third party who then finalizes the deal and hands over the required money/papers to the concerned party.

Independent Neutral Third Party

The escrow is an independent neutral third party who is often involved in such transactions of buying and selling property to secure the buyer and the seller from fraud. Following are the functions of the third party (Escrow)

Escrow Functions

  • Receives the money from the buyer which is then deposited into the escrow account. The paper’s are then received from the seller after all the terms and conditions have been met. Calculates all the expenses which would have to be deducted such as taxes, rent, insurance and interest if any. Read the full story

 

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