Once the buyer and seller have agreed on price and terms for the sale of a piece of real estate, the escrow process begins. This can be a confusing process, especially for first time homebuyers. Below are some key points that can help answer some questions about the escrow process.
What exactly is an escrow ?
An escrow is an arrangement in which a disinterested third party, called a escrow holder, holds legal documents and funds on behalf of a buyer and seller, and distributes them according to the buyer's and seller's instructions. In York PA the Listing Broker typically is the holder of the escrow funds that will be distributed at settlement.
How does the escrow (Title) process work?
The escrow is a depository for all monies, instructions and documents necessary for the purchase of the home, including funds for the down payment, lender’s funds and documents for the new loan. The duties of an Title Company include: following the instructions given by the principals and parties to the transaction in a timely manner; handling the funds and/or documents in accordance with instructions; paying all bills as authorized; closing the escrow only when all terms and conditions have been met; and, distributing the funds in accordance with instructions.
What documentation is required?
Receipt of your deposit is generally included in your copy of your purchase contract. Your funds will then be deposited in your separate escrow or trust account and processed through your local bank.
What information will I have to provide?
Typically you will be asked to complete a statement of identity as part of the necessary paperwork. Because many people have the same name, the statement of identity is to identify the specific person in the transaction through such information as date of birth, social security number, etc.
How long is the escrow (closing) process?
The entire escrow process can vary and is typically determined by the terms of the purchase agreement. It can range from a few days to several months. Typically an escrow often takes an average time of 30 to 45 days. The escrow process ends when you actually close on the home, during the closing procedure. This is when all funds are transferred accordingly, when all documents are signed, and when you get the keys to your new home.
For more information contact the Pilgrim Team at Professional Realty Associates or go to www.PilgrimTeam.com