What is closing or Escrow?
Closing (also referred to as “settlement” or “escrow” in many parts of the country) is the process whereby an impartial third party, such as an attorney, an escrow company or title company, is entrusted with the job of seeing the transfer of ownership from the Seller to the Buyer takes place according to the terms of the written contract agreed upon by all parties involved. The closing agent keeps or holds any funds or documents safely until all the details have been settled and disburses them to the proper parties at the proper time. At the actual time of the closing, all the parties come together to sign their appropriate documents. The seller will be asked to provide clear title to the property and the buyer will be asked to provide the funds needed o close the sale. If there is a mortgage loan involved, the closing of the mortgage takes place at this time. Anyone involved in the transaction may “open escrow”. Generally, the real estate agent takes the initiative and opens escrow. I
