Escrow Closing
Escrow is the delivery by the buyer and seller of legal documents and money to a neutral third party who completes the transaction in accordance with the instructions of the parties. Escrow provides a mechanism to assure safety and convenience in carrying out the provisions of a sale or loan agreement. An escrow agent is familiar with the rules peculiar to real property transactions.
Below are several frequently asked questions and answers regarding escrow closing. If you have any additional questions, please feel free to
contact our escrow staff at one of our branches in Lake Havasu City,
Kingman, Bullhead City
and Parker.
Frequently Asked Questions
Answers to Frequently Asked Questions
The escrow fee is usually shared equally by the buyer and seller, but the parties can agree to some other arrangement if they wish to do so. The escrow fee is based upon the sales price of the property or the amount of a new loan.
The escrow agent provides many vital services including:
- Orders a commitment for title insurance
- Obtains information needed to clear matters affecting title to the property
- Prepares mutually consistent instructions for signature by the parties that allow the escrow agent to take many actions on their behalf without further consultation
- Prepares many of the documents used in the transaction
- Acts as a depository for funds and documents needed to complete the transaction
- Figures the necessary prorations
- Clears drafts deposited in the escrow through banking channels
- Closes the transaction when the instructions of the parties can be satisfied by recording documents and disbursing funds
- Pays liens and encumbrances authorized by the parties
- Coordinates issuance of the title insurance policy for the buyer or lender
- Furnishes each party a closing statement showing disposition of funds in the transaction