How Does Escrow Work?
Escrow is when an impartial third party holds on to something of value during a transaction. It is a method of closing a real estate transaction. This method acts as a middleman between buyers and sellers. It can be an attorney, title company, a trust company, an escrow company or the escrow department of a lending institution. Here is everything you need to know about Escrow.
Process of Escrow
The escrow agent sets the terms of the transaction. This is mainly safeguarding and distributing all funds associated in the transaction The buyers and sellers come to an agreement that is acceptable to all parties. Under a mutual agreement the realtor will turn over the agreement to the escrow agency to be closed.
Escrow And Closing
Any fees incurred through escrow are split equally between the buyer and seller. It is through escrow a home warranty plan can be purchased.A home warranty policy is an annual service agreement that protects a new homeowner against the cost of repairs or replacement of major household systems and appliances that break down due to normal wear and tear. A home warranty plan at closing gives the buyer peace of mind and access to local trained technicians who can help with repair or replacement. If the seller doesn’t offer a home warranty with the sale of the home up front but a home warranty is included in the contract of sale, it’s often the title company that purchases the home warranty. This purchase comes from the money involved in selling the home. If the home warranty plan is purchased 30 days before closing. Global Home Protection has a -A rating on Better Business Bureau and 4.7 rating on Google . We have a 24 hour claims department. Our nationwide network of technicians are available for same day service. Sign up today to receive $150 off plus 1 month free .Call 877-660-1621 to receive a free quote today.